Here’s the 2013 outlook for the first half for the S&P 500 (SPX). There is a giant rising wedge that needs to be resolved. My proposed Elliott pattern suggests somewhere around 1500 is the top. While the DeMark daily SPX and the Russell 2000 (RUT) are just a day or so completing their respective TD Sequential counts, the weekly TD Sequential is just a few weeks away from completion if the market stays impulsive to the upside. If we can get these potential events to converge at the same time in terms of price and time, that’s where the top of the market will be. Since the SPX and RUT have just about reached their price exhaustion points on the daily charts, all it takes is a catalyst to bring the market down so all signs are under consideration.
Portfolio positioning is to stay neutral overnight but initiating intraday long positions. (updated mid trading day )