Beat goes on
As long as the market is contained by those trend structures, distribution will eventually prevail and the current congestion will give a way to the new IT downtrend.
Tops are process, this process may take some time, the longer it takes, the stronger and longer the sell off will be. If I have to take a wild guess, this action may continue until 200DMA on SPX converges to the price close enough while the index is contained by the corresponding IT and LT trends.
However if you are a ST player, I suggest you to keep the following two charts in mind for the next day or two. They are showing extreme readings that usually coincided with ST, sometimes IT tops.
ISEE equities-only closed at 199
CBOE P/C ratio closed at 0.54 while 10DMA of OEX P/C has been flashing an intermediate term sell as posted before
Daily PCs:
10DMA of dailies:
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