Questioning This Move Up In The Stock Market

The S&P500 made a new high for the move today but closed pretty much where it opened forming a doji. A doji is a warning sign that the current trend is about to consolidate or actually reverse.

In the lower pane is a chart of the Shanghai index and as you can see this market has not made new highs along with the S&P. What we are seeing is a bearish divergence which suggests that the current rally in the S&P may be just about over. A move back below Friday's low in the S&P will confirm that a short term top may be in place. We'll see what happens.