I like to use this site for sentiment readings. They are not always timely though.

EWI posted that the Daily Sentiment Indicator (DSI) that they track is now 86 yet again on Thursday after an 86 reading on Monday and Tuesday. This was after the 930 high of early May was about an 85 reading. So maybe DSI is also “knocking on the door” to a penthouse move to the top. And then when there is nothing left but bulls….watch out below.

The Oct 2007 peak was an 88 reading. Somehow I have a feeling that the DSI is knocking on the door to a reading to hit into the 90′s. It just doesn’t seem a “top” would not spike up in one final fit to a new high. P2 deserves a DSI in the 90′s. It often hits the 90′s for other markets such as gold, etc, so it is not unusual.

So it too supports my thesis of a move over 950. The other real driver in this market is the DOW. Once it broke above 8500, its like a dog chewing on a bone and I think it can smell DOW 9000. DOW trades with two new members come Monday: Cisco and …I forget. Should generate one last bit of excitement sometime next week. The DOW has been lagging all year. It is very near its 2008 finishing price. 2 new members may help weight in the final direction and a peak north of 9000. The DOW is now rallying above its 200DMA for the first time in over a year.

None of this HAS to happen and we may have seen the highs. But did it feel that way today? Bulls were hanging around. It just seems to me, sentiment-wise, this thing would finish off nicely in one last squeeze for old times sake. Make the unbelievers ,believers.

Also the SPX weekly candlestick suggests more upside this week, even if only a spurt. The weekly is showing small signs of topping, but a move to 975 or higher is certainly possible.

The weekly upper Bollinger Band lies at 968 and the weekly 50MA lies at 978. It would make sense for the weekly to hit the upper BB, its come so far! Also one final kiss of the 50MA would be fitting. This is what happened last May 2008 on Intermediate wave (2) of P1.

Its close though. I see stories abound talking about the market and its bullishness. No more talk of a “needed, healthy correction”. Now its about how this thing might go higher and might last quite a while. Sure signs we are getting near the final week(s) of P2 at least for the initial significant top.