US Stocks Swing Even Higher

Yesterday, the market continued its rally and at this point, the previous count looks extremely stretched. By now the bears should have been stopped out.

RSI quickly swung from oversold to overbought suggesting that the bounce can be near to exhaustion, but so far there is no divergence on the lower timeframes. However, there is a growing negative divergence as the price makes lower highs and RSI makes higher highs.

The look and feel of the bounce make me suggest that we have already completed wave w and now is in wave x which can take different shapes and be volatile. On the chart, I indicated one possible scenario with a triangle in blue which would fit the bigger picture as posted previously.

SPX500, 4-hour chart

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