Monday, December 31, 2012

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The S&P cash market and the futures market sport completely 2 different patterns. Focusing on the cash market which is the least bearish, the four hour DeMark is holding despite an undercut of the TD Setup bar 8. There is no chart of the pattern but the last hour selling last Friday may have set up a larger retracement higher or consolidation. Need more data to fill out the blank spaces.  

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A closer look at the daily DeMark. It is still in the setup phase. It will cancel out if the S&P closes at/above 1426.66 today or 1419.83 tomorrow. 

 If the market starts punching the 1425-1430 levels, further gains are likely. However, another visit below 1400 is trouble for the bulls.  Currently, I’m a bit perplexed by the direction of where the market wants to go from here so I’m awaiting more data points before making my next move. The portfolio went flat from long just 5 minutes before the Obama statement on the budget talks. Portfolio will stay flat overnight. 

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