The S&P and the market in general has been grinding higher over the last few weeks much to the chagrin of short sellers. There have not been many down days since late June, but there are signs of an interim top forming. The chart below shows the SPX up 190+ points since July with no meaningful pullbacks. A simple Fibonacci drawing shows a perfect 161.8 extension up to 2193 from the late June dip that went from 2120 to around 2000.
Today's action took the SPX below the high of the 21 day low bar as the MACD leads with a bearish tone. We see a pullback happening over the next few weeks with the first stop at 2147, then continuing down to around 2120. After that it's anyone's guess. With all the events around the world and our country, uncertainty will be the theme to finish out the year. It's a good time to sell call spreads and buy SEP (delta 30) puts on the SPX.