ALOHA. Soul, Ph.D. 5 P a g e

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1 Another day and another ATH for the S&P, DJIA, NYA but still not for the NDX, NAS and RUT. Thus wave-e of minutev is still underway to SPX , with an ideal target zone of SPX There was a slight negative divergence on the hourly RSI5 (see Figure 1B) and the market started to decline on that leaving us with a 9.03p move down off the SPX high so far. I expect this to become >10p. Hence, why I ve tentatively labeled today s high as nanoa of micro-e (See Figure 1A). If we get an >10p move, then I expect the orange trendline at SPX tomorrow to hold. A break below it would be a first warning sign. But as said before: only a break below SPX2624, followed by a break below SPX2606 will make me seriously question if the market has topped. Figure 1. SPX-1-min chart. A) Micro-e of minute-v underway to SPX B) negative divergence on Hourly RSI5. Note wave count shows traditional EWT. A B 1 P a g e

2 I will sound like a broken record, but the daily Technical Indicator chart of the S&P500 continues to be Bullish. Yes, the RSI5 is still sporting the negative divergence observed yesterday, and we have a bearish intra-day reversal. But the latter has been proven time and again by this Bull to not matter much. In the meantime, the A.I. s non-ideal buy signal from last week continues. Price remains if course firmly in an uptrend from all perspectives as it is above its 20d to 200d SMA and above all important trendlines. In addition, the MACD is still pointing up. Thus, the most important TIs remain on a buy, and want to see higher prices over the next few days. Figure 2. SPX daily TI chart. TIs pointing up. Price still above 20d-200d SMA and trendlines 2 P a g e

3 Not much to add to the daily NDX chart and wave-count I showed yesterday. Price made a slightly higher high today, and all TIs are therefore still pointing up/on a buy. Also for the NDX price is above the 20d to 200d SMA. Nothing bearish. $6579, which would make for an almost 5=0.764x 1 relationship, remains the ultimate target for minor-5. The blue arrows show the symmetry target break out above the ATH made late-november. Targets exactly the $6579 level. Additional evidence for the importance of that price level. The alternate possibility remains that we re dealing with a minute-b of minor-4 wave, and that we are still looking for a break to the 100% extension at $6162. But as said yesterday: that s a low probability alternate. Figure 3. NDX daily TI chart. A.I. Buy Signal from last week continues. Price above 20d-200d SMA and trendlines. Minor-5 underway to ideal $6579 underway. 3 P a g e

4 The S&P500 s McClellan Oscillator (MO) ended today at +6, down another 10p, and again not confirming today s high either, similarly to yesterday. Only a few more stocks are advancing than declining, leaving the SPX-SI ([Cumulative] Summation Index of the MO) still on a buy signal. But, the lack of breadth for each day the market moves higher is now rather apparent (3 rd day in a row) and could take it s toll tomorrow. Hence, the tentative awave label in Figure-1. Note that the NDX-SI turned back to a buy on Monday; and remains on a buy; further confirming its minor-5 to $6579 count. Not shown here, but the $CPCE dropped to 0.51 yesterday, and ended today at 0.57, suggesting some short-term top and downside as well: too many calls. The NY A/D cumulative line is possible negatively diverging (see Figure 4B), but is still pointing up and well above it s EMAs. It needs to move down and below these EMAs to suggest a larger correction. Meanwhile the SPX A/D is not showing negative divergence. Figure 4. A) SPX-SI still on a buy. B) NY-A/D cumulative line for common stocks only shows possible negative divergence A B 4 P a g e

5 In conclusion: The SPX, DJIA, NYA made again new ATHs, but the NAS, NDX, RUT still haven t. There s not been an >10p pullback on the S&P since the SPX2624 low, but breadth, hourly and daily RSI5 suggest we may see it already tomorrow. It should be short term weakness targeting SPX , as there s currently nothing in the daily charts yet to suggest the S&P will not reach its ideal target zone of SPX The NDX counts best as being in minor- 5 targeting the 200% extension at $6579. For now, the TIs on the daily S&P, DJIA, NDX, and NAS chart remain on a buy as well as their (underlying/supporting) breadth indicators, with some short-term deterioration. We should thus continue to expect higher prices going forward, with possible some short-term weakness. I expect the hourly RSI5 to become oversold before the next rally starts. ALOHA Soul, Ph.D. 2017, Intelligent Investing, LLC. This copyrighted daily periodical is published on most stock market trading days by Intelligent Investing, LLC, and is intended solely for use by designated recipients. No reproduction, retransmission, or other use of the information or images is authorized. Legitimate news media may quote representative passages, in context and with full attribution, for the purpose of reporting on our opinions. Analysis is derived from data believed to be accurate, but such accuracy or completeness cannot be guaranteed. It should not be assumed that such analysis, past or future, will be profitable or will equal past performance or guarantee future performance or trends. All trading and investment decisions are the sole responsibility of the reader. Inclusion of our information for trading and investing are the sole responsibility of the reader and cannot be construed as any type of recommendation, nor solicitation. 5 P a g e