@bwbillh You got mealybugs near the top. If you want your plant to live, start treating(neem oil, insecticides, cleaning ) it stat.
And i lost 2 of these due to mealybugs, so trust me on this.
I'm guessing the white spots up there are actually little rocks from the substrate that got caught up in between the spines. Take a toothpick and poke at them to see if they are soft or hard before you proceed with some kind of intensive treatment.
ok I pulled some off and it was very light and fluffy, not sticky. The fuzziness increased when I moved it closer to the window and in winter the sun is low enough to come into the window directly so since the beginning of October it started to get direct sun - maybe that's why is got more fuzzy, I don't know.
Since its been about 2months since I noticed the fuzziness starting and if it were mealy bugs should I have seen some type of damage? I really want to know what to look for so that I can keep a look out. Is there any pictures of what mealy bug damage looks like? I have seen mealy bugs outdoors on plants and its very distinct. Is it the same for indoor cactus?
That fuzz looks like household dust to me, not anything the plant or any bugs produced. You would not likely see any damage from mealy bugs because it would be hidden under all those spines. Just keep an eye out for the actual bugs or the sticky web they produce.