On the flipside, if prices are going to crash here a bit, this again is the logical place to do so if it loses the channel line. So lets watch that channel line.
We do have a positive divergence on the SPX hourly chart RSI but its not really backed up by market internals. For instance on the DJIA chart above, there is no telltale positive divergence in the breadth thrust indicator nor on McClellan's as we have had many times on P.
NYMO doesn't really scream "buy me" either.
I haven't forgotten the Minor 4 triangle count.
But this is how I would count a truncation:
[Update 5:04PM: A closer look at the NYAD high and how prices have been unable to match so far.]
The DJIA is the only index left that doesn't have severe overlap in its waves. The Nasdaq Composite broke down rather hard today.
Did the Nasdaq truncate?
Its a Ponzi waiting to be unraveled. I of course postulate that Ponzi's unravel at lightning speed.