Pullback Ahead I Think

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There a few reasons to expect a pullback very soon. The hourly chart on the S&P is now overbought with bearish divergence. Any push to new highs will create a nice divergence sell signal on the MACD shown above. If there is a gap up tomorrow, it is probably worth selling into for a short term trade. I will probably post a trade if there are new rally highs tomorrow.

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This chart shows that the time same amount of time has now elapsed on this rally as it took for the preceding decline. And the rally did not completely retrace the move down. This is another reason to still either consider a larger downtrend, or at least expect the market to pullback a bit.