Some of my readers will recognize my previous work from the Reversion to the Unified Mean (RUM) Wave blog. I wrote it in relative anonymity for a couple years. That work can now be found here.
The bulls made a strong statement today with a big rally. Indicators are still positive, however the Very Short Term Indicator is literally pegged at its max level. The SPY chart below shows some increased price volume action at about the 197.30 level.. precisely where we are at now. Given this level of resistance, the VSTI condition, and the appearance of 5 defined Elliot Waves from the bottom I'd say a mild pullback is in order. Somewhere in the realm of a 38.2% to 50% Fibonacci retracement would seem like a reasonable solution. Below is a (very busy) snip of he SPY.