On a grander scale, the SPX could be setting up for something larger. The Market Sentiment line (bottom graph on SPX chart below) is fully extended into the upper most bullish area. This signals that even if the market continues to rise, those gains will not be significant and will be given back in the future. This has happened a few times in the past as the Market Forecast line (middle green line) drop out of the upper reversal area (above 80).
The TRIN is acting very strange these last two days also. As the market is going nowhere, the TRIN is posting fiercely bullish numbers, yesterday hovering around 0.6 and today on the open it hit as low as 0.37! It seems large traders are leading this market higher buying only the stocks that are posting new 52-week highs. Very selective buying does not lead markets higher!
On today's up day, I tried to get some call spreads filled. I only caught one trade - the SPX Feb3 2285/2295 for $3.20. I have been working the SPX 2285/2295 this month with some success. With $3.20 credit for a 2 week trade that would require the SPX to make and hold a new all time high, I feel like I am off to a good start next week.
Let's see what happens as the market gets used to new US president next week. Today's action was like a repeat of the action witnessed on the day of his recent press conference. The minute Trump started his inauguration speech the SPX dropped 6 points. It only settled down after he stepped away from the microphone. If he keeps talking the market actually may start taking him seriously. This may kill the market rally named after him.
