S&P 500 (SPX) Upmove Losing Steam

Heading into the final hour of trading for this week, the SPX remains about 8 points off of its marginal new high. As of this moment, other than a GLARING NEGATIVE MOMENTUM DIVERGENCE (higher-high in price vs. lower-high in momentum), the price action itself is not indicating an imminent end to the uptrend. HOWEVER, the momentum divergence puts us on notice that the power underlying the upmove from the 10/10/05 low (1168.42) is losing steam. Furthermore, a close below 1297.50 coupled with the momentum divergence will trigger a more emphatic warning that the post-Oct. upmove is in trouble.

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