The S&P 500 is trying to grind higher, but from where I sit, this move looks overcooked.
We’ve broken out above the U.S.–China trade agreement gap and taken out the highs from that stall, sure. But when you zoom out, the setup starts to look fragile.
The daily time frame is clearly overbought. We’ve got divergence showing up. Topping patterns are forming. The melt-up is happening — but it’s happening on thin ice.
If this market wants to push higher, fine. But I’m not going to chase it.
I’ve said this before and I’ll say it again — I’m hoping for a pullback. Not because I’m bearish, not because I want to call the top. I just want a better entry.
I’m sitting on more cash than usual, and it’s not because I’m scared. It’s because I know what this setup looks like. When I get impatient, that’s usually when something breaks. And I’d rather be in a position to take advantage of that than caught off guard.
The Sentiment Swings Are Getting Extreme
The biggest challenge right now isn’t just price — it’s sentiment. This market pulls back 0.5% and everyone’s begging for it to go higher. A 1% dip feels like the end of the world.
A 5% pullback? Total panic.
That’s not healthy. The emotional range traders are dealing with now is the widest I’ve seen in a long time.
I’m not interested in calling a top here. I just want the market to respect the range. If we’re going to consolidate, great. If we’re going to dip, even better — I’m ready to buy.
But chasing a melt-up when the signals are already flashing red? Not happening.
Plenty of Trades, Just Not at These Levels
There are still good trades out there — individual names, income setups, ratio spreads… But this isn’t the time to overcommit.
I’d rather keep my capital flexible and wait for a better setup. A dip would reset the field and open the door for higher-probability trades.
Until then, I’m sticking with what works. Small base hits. Defined risk. And patience.
Because if this market does finally crack, I want to be one of the few traders ready to take advantage of it — not one of the many stuck chasing the top.
I’ll see you in the markets.
Chris Pulver
Chris Pulver Trading
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P.S. The Pattern That Shows Up Before Explosive Moves
Fundamentals tell one story…
Price action tells the truth —but most traders read it too late. And that’s where the “PinchPoint” comes in.
It’s a simple pattern that shows pressure building before a breakout.
