New all time high

$SPX and $DOW continue to clock all time highs.

We are only a few points before the upper end of our projected target (~1,536) qualifying from both last November's low as well as from the March 2009 low.

RSI(14) is also approaching overbought on the daily and is in overbought territory on the hourly for $SPX. Also the bonds picked up a bit today, indicate buying others than the FED.

Our short term trading indicator, SPY:VXX on the hourly has also signaled that the current leg up (since May 2) has probably ended. Although this is a good indicator, it is not enough, however, without a confirmation on the daily charts.

Time will tell in a few days, perhaps as soon as tomorrow morning with new unemployment claims.

The macro is expected to deteriorate because of the Federal government sequestration. Claims are real time data on a weekly basis, unlike employment numbers given out once a month. Weekly claims correlate highly with $SPX direction in an inverse manner.  

Till tomorrow