We are flagging and, at this stage, it is a bull flag indicating additional upside sometime soon (I did not say tomorrow, I said soon, for those who are illiterate). I remain in all cash until we gap up/burst out to the upside or break the flag and sell-off. The market had a terrific run and it needs some time to properly consolidate those gains. As the consolidation develops, it will show appropriate entry signals.
Tomorrow, we will likely continue the flagging action. The SPX finds immediate support at 780 and 775 and very strong immediate resistance at 800. If you are going to day trade, just remember that consolidation days get choppy. Also, do not forget about quadruple witching. You might as well go take the day off and ride some horses like I did last Friday.
I suggest keeping an open mind if you are thinking in the intermediate-term. We could be forming the bullish broadening wedge pattern. This downward coil will produce a Force™ spike if/when it breaks out above the 50-day MA. If that occurs, it will furious and immediate. Likewise, if we breakdown completely, the bottom of the wedge would be at around 600. Just FYI.
You can see a various time corrections, an ascending triangle, and presently, another time correction. After a series of time corrections, you usually encounter a more deeper price correction, not to be confused with a sell-off. A possiblity is that one may occur between the 50- and 30-day MA's on the SPX. If we form a doji, it'll likely be a large time corrective flag.
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