A gentle easing of the overbought condition after the Echo high, and a doji inside day as the market preps for its next move. Doji's and inside days mean hesitation in both directions, a move beyond the inside day would often indicate a continuation in that direction.
A relatively High Arms reading helping to release the pressure. A reading at this level is more bearish than necessary and is supportative of the bullish case.
Of course it is entirely possible that the market needs to explore the downside, and we should expect the usual expiration re-positioning. Lots of out of the money options above and below the market to 'hold' the market in this neighbourhood prior to the shortened holiday week coming next.
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Disclaimer: This is the diary of a personal trading system, its methodology and the signals that it is producing. You are welcome to follow along but please understand that the information presented here is for educational & entertainment purposes only. No recommendations are being made to buy, or sell stocks, options or futures contracts. Please consult your own financial advisor before making any investment decisions.