In my view, I believe that a few signs on the chart of the SPX does seem to indicate that a correction is due. There is a current divergence looking both the the monthly and weekly volumes in relation to the price. The is highly elevated too and it seems we are not seeing a record level that we have not ever seen before. Of course, the correction back in March is a contributing factor on seeing such elevated levels but they cannot simply go on like that for too long now. Despite a vaccine being available and as of tomorrow starting to be used in the UK targeting around 2 million people, the economic prospects and worries seem to be more elevated both in Europe and the US. The US market has been flooded by vast amounts of money printed by the FED which were mostly use to purchase bonds and stocks, increasing it's . The argument of a high is real and of course is something to take serious but personally I believe that deflation will be the first real threat. Every major crisis in the past had started with a deflationary period and the pandemic has set the stage perfectly for that.
It is very possible to see some high in the month of December but I believe that end of February mid March would be the the more sensitive times one should watch the market. The levels to watch would be the 21EMA on the Weekly chart as , breaking that level, would be a first sign of a potential reversal.
I will update this idea with more charts as we go along but for now I just wish to publish the current state and see if we will get any signals before the end of 2021.
From a technical perfective the long term chart seems to indicate that the SPX does not have much more room to the upside looking at the MACD but also at the Fibo extension which seem to indicate the touch to the upper zone. The next few weeks will be interesting for sure and for the ones shorting the market now, I wish you all good luck.