We have been waiting from Spx 1130 for a pull back in the index because the move from 1044 looked stretched and the upmove looked difficult.
Though we made about 20 more points in the SPX the upmove has been very laboured to say the least.The fact that the index has not given us a 20 point correction suggests to me a lot of strength in the index and I would be surprised to see the index not touching 1200 in the next 3 months.
Even right now at known previous resistances, I am calling for a minor correction of 20-30 points in the Spx, which should not trade below 1120 now.This is keeping in mind the overbought nature of the NYMO.
The VIX chart above is another confirmatory signal.We are below our green line and I have drawn 2 new trendlines in pink. A move above our pink TL at 19.5 should confirm that a short term top is in.
