Tuesday, February 26, 2013

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The minimum wave structure for the S&P 500 (SPX) has met the bare minimum for a completion of wave 4 right at the the 3% drawdown level – the minimum level to be considered as a corrective pullback. Other than the channel support, there is really nothing to suggest it will go on from here to follow through to a wave 5 higher. There seems to be more unfinished business for the bears below 1470 where there lies more markers of support. At the least there is a hope rally building up much like last Friday. 

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Looking for other support levels, the TDST support line for the four hour SPX is at 1467.56. From yesterday’s post, the TDST for the daily SPX is at 1457.15. When these levels are met, the DeMark count status is the main determinant on whether the trend continues downwards or reverses. Just another item to catalog for future reference. These will have meaning when used with other indicators. 

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Apple (AAPL) is at decent buy entry. AAPL has been in a range from 435 – 485 for about a month. The DeMark TD Setup will record a finishing nine count today. This could be interesting for swing or long term traders. For long term traders who are looking at various entry points, this should be one of them. For swing traders looking for a low risk trade, that time is now given how tight the stop loss parameters are. 

The markets made some serious outsized moves yesterday. Just watching the VIX made my jaw drop. These type of moves paves the way that some bounce is due but it appears temporary. (updated mid trading day)

 

 

 

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6 Responses to Tuesday, February 26, 2013

  1. Hi there,
    Could you please explain what a TDST support line is?
    Thank you.

    • Art says:

      The TDST (TD Setup Trend) helps determine the probability if a completed 9 count TD Setup will transition to the 13 count TD Countdown. The level is identified by the absolute low ( or high if looking for resistance ) of the previous TD Setup range. So with the current example, the absolute low of the previous TD Setup is the low of bar one at 1467.56. That will be the TDST support level. If the SPX trades lower and completes a TD Setup above 1467.56, that’ll increase the chances TD Countdown won’t occur and the market should stall/reverse. Unfortunately, it’s not under TOS so you have to draw them manually.

  2. … and let me know if the TDST line is among the TOS studies?
    Thank you.

  3. Emrul Islam says:

    Loving this site, only found it today while searching for TD ST info. Are you on Twitter and can you do a chart of some other stocks – GS, GOOG, AMZN would be welcome.

    Please keep it up, wish I could get TOS but they don’t offer it in England :-/

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