A most excellent explanation of the situation Froddy.The S&P, Nasdaq, DOW are all heavily weighted by the big boys (Apple, Amazon, Netflix, Facebook etc.) and disproportionately so. This means that when these stocks are strong, it gives the impression that the markets are strong when they're not.
What is going to happen eventually is that these stocks will reverse, and when they do, it will be dramatic. Basically there will be nowhere to hide.
Here's the range to watch (I have no idea what to expect in the middle, only what to expect at the top!):
S&P 500 SPDR Candlestick chart created with TrendSpiderchrt.biz
Please bear in mind that this is the weekly chart, so not short-term. You all know my longer-term concerns regarding the put:call ratio and the SKEW.
The S&P is forming an inside week so far, so there will be chop going forward!