In September, we drew attention to the ABC triangle and noted that the ability of the SPX to reach our 3600 upside yearly target boils down to the reaction of the index to one bearish (A) and two bullish (B & C) trendlines/angles. The SPX tested the bullish ‘C’ angle five days in a row until it decisively broke above it at the start of last week. In the process, the SPX broke above the key 3400 support/resistance level as well:

While the action of the last few days has been undeniably bullish, the daily market breadth reached overbought levels and is flashing a warning signal, as such high readings normally precede a sideways/down phase:

For the week of November 9, CIT Channels project an upside target of 3600 and a downside target of 3370. The daily bullish trend will be reversed with a break below 3450: