The S&P powers higher . . . while it deteriorates from the inside. This appears to be a rising wedge or an ending diagonal. These sometimes end with an upthrust above the upper trend line that is quickly reversed. Of course it can continue higher, but it feels tired.
Meanwhile the internals cave in: the percentage of S&P stocks above their day MA show negative divergence.
The April highs ended without any deterioration in 52 week highs, which was a major tip-off to me that the break was probably not the Big One. Now, however, I'm seriously considering trimming my remaining long position from the March '09 lows. Yes, I probably sound like a perma bear on this blog, but I when given the opportunity, I can get bullish too. Now is not an opportunity, but it hasn't been the time to be overly bearish either. That time could be fast approaching.
Yesterday I took off some SPY calls and got out of SH mid day because the opening up thrust failed to better the highs from Tuesday. I'll be looking to add back the SH today.
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