Getting close to targets. From the recent Total market view: "ideal high area INDU YR1 18727 with other levels (Q3R2, 1HR1) a bit above that; SPX Q3R2 to 2HR1 2198-2209; NDX achieved 1 day above 4816 so if above that next pivot resistance level is AugR1 at 4857, and RUT Q3R2 to YR1 combo at 1246-1261."
INDU a bit further than 59 points, but SPX at 2193 just 5 points from target range, and RUT reached its Q3R2 and even closed above by 2 points. I am still holding out for INDU and SPX set to reach their target zones, and NDX to go a bit higher too.
And with ISEE at a low for 2016, bears and/or demand for protection a little too fast too soon. A low ISEE value means a lot of puts. Some days close to the value on 8/23/2016 are 9/28/2015, 1/20/2016, 2/8/2016, 5/13/2016, etc. Translation: we just saw ISEE values today that are most usually at key lows! Bearish sentiment is just too thick.
One of the better analysts, Savita Subramanian at Bofa, made the news headlines today sounding alarm for elevated risk of correction. She has been bearish for a lot of 2016 with the latter link indicating caution 3/26 at SPX 2035 but basically I agree. Despite my view that markets should go higher in August, defying Jeffrey Gundlach, Tom Lee and GS in one fell swoop call, I now think upside is limited and think the chances of a hedge-able trade-able pullback are significant - and even more so when we see INDU tag its YR1 and SPX reach a bit higher.
In other news, EEM had real selling today with a rejection of 3 pivot resistance levels - 2HR1, Q3R2 and AugR1. If you took th elong on 8/3, this is worth watching to protect gains. TLT is still below its AugP, but another month of sideways digestion without much damage to the trend. A jump above all pivots again would look pretty good.
SPY, IWM, EEM and TLT below.