The McClellan Oscillator made it decidedly back above the zero line today as was expected. This was the first prerequisite for a retracement top. However, today's action was strong enough that a top should not be expected right away.
The SP500 closed up more than 2% on declining volume but well above resistance at 1173. There is minor resistance at 1227 and strong resistance at 1149 to 1258. Also the now declining 50ma will provide resistance if it is reached. Altogether, it looks like the rally may continue, perhaps with a small pullback, up to resistance before rolling over again at the end of August or first of September. I wouldn't get too anxious to short this market for a little while.