SPY - Possible ST caution signs

Courtesy of eSignal

Above is the daily XIV which is above it's upper band today.
Usually it needs time to get back into the bands at lower prices.

Courtesy of eSignal

Courtesy of eSignal

Courtesy of eSignal

The three charts above are the SPY 240min, daily and weekly charts.  Today each has completed a "minimum" of 5 Elliott Waves.  This, if the wave does not change, is usually a heads up for some kind of counter trend move.  The time frame is not known until it starts to happen.  This is NOT guaranteed, as Elliott Waves are not fully confirmed until it is history.  That is why it is only raising a caution flag at this time.

Note that the months of August and September, in the past, have been weak months for the stock market.

Also note that several posts on this blog have indicated a "probable" rise into the year end due to the strong breadth seen in February and June along with some other factors.
So, at this time, it is likely that any pullbacks may become buying opportunities, but, not to be invested in blindly.  This stock market is eight years old and there are many indications that a top is in the making going back to late 2014.

To review stock market valuations, one good website to look at is  AdvisorPerspectives.com By Doug Short
One good article:
http://www.advisorperspectives.com/dshort/updates/Q-Ratio-and-Market-Valuation?utm_source=dshort_feed&utm_medium=rss&utm_campaign=graph_link

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This has been posted for Educational Purposes Only.   Do your own work and consult with Professionals before making any investment decisions.  
Past performance is not indicative of future results