The SPX has decisively broken through significant resistance at the 1420 area and has cleared
out a double top formation. The market is moderately overbought in both the short and intermediate
term and is well extended above the trading band which has dominated the rally since early Jun.
So, we may well have a mini - blowoff to a new cyclical high which calls for a little backslide
but which is still likely to test higher ground ahead. The indicators do not suggest anything very
threatening is imminent from a purely technical point of view. SPX Daily Chart
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