%GAIN in SP from March 6th to June 2nd = 29.59%

22.6 % Gain = 23.6% Ret
18.3% Gain = 38.2% Ret
14.8% Gain = 50% Ret

On May 22nd we had 20.23% Gain – hence almost a 38.2% retracement.

I feel like traders, looking only at the SP index value are being played with a bit. Now the fed is taking money from home traders pockets, too, I think. Main stream America looks only at the index value too, but also see gasoline prices and make their judgement of the economy on those two things alone, I'd bet. Maybe interest rates add to that opinion if buying or selling a house. How's that for intermarket analysis! I just order a couple books on the subject based on reading the blog. Didn't even know what it meant 2 weeks ago.
This blog (and the stock market volatility) has help me to become more educated.

May 6th was the high. As of 6/2 the SP is down 3.21% based on SP/dollar index value.

Select the UDN tab to see how the SP is really doing.

http://stockcharts.com/charts/performance/perf….

With everyone waiting for a pullback based on the SP index, I think we are missing it because we aren't looking at it in terms of dollar value. May 22nd, when the SP closed at 888, we had a 38.2% retracement when looking at the SP per Dollar index and %gain.

Rally since early March was 19.26% gain in SP per dollar index terms.

Retracements would put the percentage gains down to
14.78% Gain = 23.6% retracement
11.9$ Gain = 38.2% retracement
9.63% Gain = 50% retracement

May 22nd we were down to a 10.73% gain. Hence we had a 38.2% retracement.

Looks like we are in a ABC / retracement for this rally but how it gets there depends on the dollar index and actual stock value changes. What the index number is could be ANYTHING, theoretically. I think if we just look at the SP index value we are missing it. I've only come to this conclusion today.

950 is a nice round number

One variable to consider is that of volume. In a rising trend, volume should go with the trend. However, volume does not appear to be leading here. Instead, there's a consolidating price pattern with declining volume.

Consider the 1 year/ daily chart (compress time to get a clearer picture of the trend in volume; declining). Alternately, view the 1 year /weekly chart; declining volume is even more pronounced. Is this a tell with respect to a pending reversal?

Also, consider todays “high wave candle” shown in the daily chart. The price action shows a serious back and forth, which denotes a struggle or pause. Is this candle pattern a possible “evening star” forming. A bearish confirmation would require a close below the real body of todays doji candle.

The next couple days should be interesting indeed! Thanks for eliciting this response.