Sentiment is very high. The last few days turned a lot of bears into bulls. Minor B wave pullback seems immenent. The top technical indicator I am looking for to help confirm a P2 top is negative divergence on the weekly. I am not going to hold my breath and insist it must happen. I am merely saying its something we can reasonably expect to happen due to the size of the move from the 666 low.
It doesn't have to be much. Just a smidgen. What would produce a negative divergence? Well lets suppose the market tops on its Minor A wave at 1014 and Friday is down a bit. Then next week we start a multi-week pullback B wave. Then a subsequent C wave rally that is technically weaker yet the market tracks to a higher high such as my 1032 target, then we should see it.
(The 1007 high may be sufficient too I am not saying we have to go higher tomorrow.)
And a weekly negative divergence would flash weakness to every trader.
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