On Monday I illustrated the NASDAQ 100 futures big gap up to start the week, and quoted Peter Brandt who had tweeted "... breakaway, exhaustion or measuring gap? That is now the question. BIG QUESTION."
The market looks to have answered the question. Exhaustion gap, to my eyes. In which case, a top is in place for the NASDAQ 100, and the market should now correct the rally from late June, at the least, and perhaps the rally from last November.
If a top is in place for the NASDAQ, is a top in place for the S&P 500? Given that the NASDAQ has lead the broader US stock market in recent months, the answer is likely yes. That probably seems an absurd thing to say, as the S&P futures are currently only a few points below their record high, and the Fed has some pronouncements scheduled in a little over six hours. How will the charts look when I wake up tomorrow morning Oz time? Nobody knows. Anyway here is how the S&P looks now.