Monday, April 8, 2013

Please note the bar above this post has a page listed as TD Sequential. It is a cliff note version of TD Sequential which will help in sorting out any confusion on the differences between 9 and 13 counts. The written portion is just a quick primer with a FAQ type format. The next portion shows the construction of TD Sequential in four charts. When time permits, I’ll include common nuances of TD Sequential and other DeMark indicators.

ImageImageFor the current interpretation of the markets, last Friday’s intraday response to the jobs report was bullish enough to prepare for more of a complex pattern rather than the straight down approach. The four hour chart of the TD Buy Setup on the S&P 500 (SPX) remains the best DeMark chart to track right now. If the active TD Buy Setup remains active throughout Monday, I will be monitoring a potential price exhaustion early Tuesday. If the SPX can trade down to at least 1530, then the first overall down leg can possibly be declared. If the SPX has different intentions and keeps poking above the SPX 1560 area, then it possible that SPX 1539.50 is the interim low and another pattern is taking over. 

One item that has not been resolved is the daily chart of the Keltner/Bollinger bands (K/B). It is really juicing up for a big move for the SPX as shown on last Friday’s post. It’s not just the SPX but the Dow Industrials (DJI), and the Nasdaq Composite (COMPQ) as well. The logical path is the K/B directs the markets to the downside. If so, somehow, the four hour DeMark chart has to reconcile with the K/B. If the K/B directs the markets higher, then it needs to reconcile with the recent SPX high of 1573.66. Staying bearish but at least I know what is in front of me. (updated Sunday for Monday)

 

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