S&P500: Sentiment fires a WARNING shot!

As the S&P500 wavers at rally highs, bullish sentiment is reaching dangerous levels. Even if not an immediate sell signal, further price rises will be hard to come by until the bullish sentiment subsides substantially. Here's the SPX500 trendline watch, as well as the sentiment chart.

Shanghai Composite: A BIG Triangle = A BIG Move ?

Since its dramatic recovery in Wave A, the Shanghai Composite has been stuck in sideways action for almost 2 years in B-wave action, providing good short-term trading opportunities. We've talked about a possible truncated Wave C in previous posts. Meanwhile though, a BIG fat triangle has set up, and price is currently approaching the very important top line. A break above will have immediate resistance around 3180, but in the longer run could lead to much higher prices in an overdue Wave C. In case of a turn-down, support is at 2650, followed by bottom line. Eitherway, we may be looking at a BIG move, and hence patience is a virtue!