More technical evidence that the S+P has peaked.

I've been on topping watch for several weeks now but the S+P has been trickling upward during that time.  Despite these minor setbacks, I'm still sticking with my original EW model which says that an S+P 500 ending diagonal is playing out but.  I think my original call will turn out to have be a few 10s of S+P points early but not at all wrong.  It was impossible to predict in advance that the throw over would be this grandiose.  Of course, I could still be proven wrong on this call because the market foolishly believes that the fed can prop things up forever.  The herd will eventually turn when it loses confidence in the fed's ability to Ponzi pump these fake markets any further.

In today's chart I can count 5 completed waves in the ending diagonal and thus in the motive wave of 1 larger degree (which is where the 5) comes from in the diagram below.  In addition it looks like a declining double top has formed from the breakdown of that 5th wave below its lower support line (which I think was wave 1 down) which was followed by a move back up which stopped right at that new support turned resistance line.  If it can't break back up into that channel very quickly then it will be confirmed as a breakdown with back test (or the "kiss goodbye" as Prechter likes to call it).

Of course if it falls back into the channel of the ending diagonal at the top blue circle and then continues to fall through the bottom support of the ending diagonal at the lower blue circle then that will be extra confirmation.  In this case, the minimum retracement should be to about the 1560 range at which point we'll have to see what the chart looks like.

If the S+P is near breakdown, the DJIA should be in the same shape.  Here's the current chart.  It shows that a 5th wave throwover on an ending expanding triangle has occurred and now it is likely within days of crashing back down into the channel:

As usual, time will tell.