Charts 06-14: Higher high at EOM July

The best thing the May 22 top has going for it is its amazing intraday reversal candle that echoed the 2007 top.  Since then, however, the tape has failed to put up anything particularly impulsive to the downside, and November channel support has held.  We still have the top of the big channel since the 2009 lows just overhead, suggesting that a run to the 1700s will take place before this is over.

I think they can manage to keep things under control through FOMC this week, setting up a 5th wave rally through the end of July, where the top of the 2009 channel will be right at SPX 1725.  This also suggests a top into the July 31st FOMC meeting, an excellent opportunity for another intraday reversal and slide.

This week will probably bore all to tears, if we are indeed finishing up the last few waves of a 4th wave triangle pattern.  There is a "major" Bradley turn date at the end of the week, if you believe in such things.

SPX 06-14

10Y