The S&P 500 index could be close to completion of the uptrend since March 2009. The ideal target for wave 5 is seen at 3,877 where wave 5 will be 61.8% of the length traveled from the low of wave 1 through the top of wave 3 added to the low of wave 4.
Zooming in of the final rally in wave 5 we can count five sub-wave higher from the low of wave 4 and the final sub-wave 5/ is turning into a wedge indicating a possible top is close. A break below the Wedge support-line at 3,789 will indicate a completion of wave 5, while a break below support at 3,778 will confirm the completion of wave 5 and the on-set of a larger corrective decline.
All time-frames from the 5 minutes to the monthly are flashing negative divergence for the RSI indicating a possible top should be expected soon. However, it's important to remember that divergence can last for very extended periods of time. Especially the longer-time frames as the weekly and monthly can diverge for years, before the top finally is in place.
As always the trend and patience are your friends, but it's time to tighten up your stops as the possibility of a major top could be nearby.
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