Let's take another look at the SPDR S&P 500 's (NYSE:SPY) big picture
Notice that SPY made another new all-time high at 248 Thursday morning, continuing its recent series of micro-upmoves during the past 5 sessions.
Indeed on July 19, SPY hit a then new all-time high at 247.
In the last 6 sessions, it has managed to claw its way to 248.
While the upside action certainly leaves much to be desired in the SPY ETF, the fact of the matter is that there is zero selling pressure, as amazing as that "condition" continues to be.
Meanwhile, my daily RSI momentum gauge has climbed to a new high for the upmove off of the July 5 low, but RSI has not yet climbed above its prior highs on June 9 or March 1, which doesn't bode well for the current advance, regardless of the lack of sellers.
Negative Momentum
To put a fine point on it, RSI still has not confirmed its March peak, yet prices are 3.2% higher now, which is a classic, glaring, negative-momentum divergence.
Then again, this market is anything but classic, so the bulls continue to whistle Dixie, as they pass the graveyard.
From a technical perspective, a SPY decline and close beneath 246.25 will trigger my first warning signal that the post-election, November-July advance is exhausted, and the potential that a large correction is increasing significantly.
In the absence of a relatively small percentage decline (0.8%), the bulls remain in directional control and we have to consider that the last several sessions of very high-level, range-bound action, in fact, represents a rest period ahead of the upside acceleration that began Thursday.
If that happens, my next immediate target for SPY is 250 followed by 255.
