9/20 Weekend update for US stock market

For the past 1 week, the US stock was keeping going up although it was at very overbaught condition. Nasadq gained 53 points and $SPX gained 26 points. For both Nasadq and $SPX, the short term trend, semi-intermdeiate trend, intermediate trend are all up. As you see from the weekly charts, the past week's up move was accompanied by inreased volume, which is bullish. Next week, will the stock market keep moving up from here or it will take a pause by pulling back first before moving back up or it could reverse to drop hard from here.

I think the stock market t is very close to major resiatance which could be an important top. Why?

As you can see from the weekly Nasadq chart, 2150 is clearly to be an important resiatance. From the weekly SPX, you can see that $SPX is very close to test its long term trend line. Long term trend line will probably provide strong resistance there. From the weekly charts, their full STO are showing they are very mid term overbaught. From the daily Nasdaq, NDX and Dow charts, they are all right at the upper trend line of rising wedge.

From daily full STO, they are very short term overbaught. Their daily MACD histogram and RSI are showing strong negative divergence.

Looking at daily $VIX, $VIX could not break below 23.15 for the last 7 trading days and it's very oversold now. There's good chance it could be starting strong up from here. As you know, if VIX is up, the stock market is down.

All the above analysis tells we need to be cautious at the current level. I would not add any new long positions and would raise up stops for the current long postions. Since the trend is still up and the uptrend is strong, I wouldn't fight the trend by starting to short the market. I am waiting to see some breaish reversal signs to come out. Once I see them, I will exit all the long and switch to shorts.