The daily tick chart shows the second lowest reading since the March rally began. Combine this low tick reading with the fact that the market still managed to hold the triangle boundaries and then finished at 939 SPX just 12 points off its cash index high, well that may be a recipe for a bullish stock-buying kind of day, one in which does not finish in yet another day of doji candles. Just the kind of day or 2 you need to challenge a major resistance area after tracing a long-winded triangle.
Technically the tick made a new recent low yet the SPX did not. That shows divergence. The tick is (very likely) ready for a nice rebound.
Kenny can surely explain it better but I think thats a decent way to look at things.
Total volume obviously needs to pick up a bit to break above 950. Volume has been weak and that has been expected. Yet low volume consolidation periods are also considered short term bullish so there are two ways to look at things. The greatest volume period of the rally is most likely behind us anyways. A final short squeeze of 950 will be the juice that helps any final run higher. Even my mom is shorting 950....hehe (thats a joke!)
I still like a blowoff 5 wave move to get above 950 to get the media in a frenzy and Cramer jacked up. The 999 target has moved a bit lower due to a lower [e] wave spot. I have 62 + 927 = 989 as a C = A target. Thats 10 points shy of the magic 1000, and thats the way it usually happens, 10 points shy of the obvious!