There are indications the S&P 500 (SPX) is starting to normalize. Currently, the SPX is still looking for a resistance point before it begins to consolidate or even retest the lows. This is the week where the SPX should begin to experience some type of selloff. With short term timeframes at price exhaustion, the rally retracement should begin anytime this week. The sweet spot is this Wednesday, January 16, 2019, where the daily SPX can record a TD Sell Setup @9. To gauge how deep a selloff may incur, utilizing various TDST Support in different timeframes in relation to their respective TD Setups is the key. There are clusters of TDST Support from the 10 – 60 minute timeframes between 2547.56 to 2564.20. That’s about a 2% move down which can be accomplished in 1-2 trading days. Any gap open below 2564.20 and stays below that level will likely see the 4 hour TDST Support tested at 2447.63. Below that level, recession discussions can be brought up again.
S&P 500 (SPX) SHORT TERM OUTLOOK: BULLISH
The four – hour TD Sell Setup has recorded a 9 count, making a turn from bullish to bearish imminent.
S&P 500 (SPX) SHORT/INTERMEDIATE TERM OUTLOOK: NEUTRAL
Neutral until further notice
S&P 500 (SPX) INTERMEDIATE/LONG TERM OUTLOOK: BEARISH
Neutral if the SPX cannot close below 2416.62 this week.
S&P 500 (SPX) LONG TERM OUTLOOK: BEARISH
Neutral if SPX closes above 2913.98 at the close of Thursday, January 31, 2019