Short term uptrend may be close to an end

The last uptrend that started on June 13 has now displayed an a-b-c pattern up:

1,608 - 1,639 - 1,623 - 1,654. Each of a and c have subdivided into 5 small waves, and b into 3.

From a quantitative technical analysis aspect, we may (or not) have a higher high tomorrow (as high a 1,665), which is then expected to reverse lower. 

From a fundamentals point of view, the last rally is in anticipation of positive news from the FED (that QE will continue).

However, Gold, Silver as well as Copper signal deflationary trends: Gold + Silver point to QE tapper and Copper+Silver signal to a China slow down. In fact, these metals are almost touching their recent lows. Therefore, the main power levitating stocks is the prospect of more free money from the FED: When/if the FED cuts back, stocks will also come back down. As the market is a 6 month or so forward looking indicator, any sign of FED cut back later in the year may have an effect on stocks sooner than later.