Sticking with the experiment on the TD Propulsion for the 60 minute chart, the S&P 500 (SPX) never took out the old TD Propulsion 1559.80 threshold level and a lower low was made at 1538.57. It was low enough where we can expand the range as notated in blue on the above chart. This places the new threshold level at 1557.12. These threshold levels can be thought of as resistance levels but drawn quantitatively rather than visually. Therefore treat the threshold level as you would for any moving average or resistance level. Currently, the SPX has pierced above the new 1557.12 level but has not closed above it. That should provide clues that demand is building and shifting the probability to a new high. A close or consecutive closes provides more evidence it is mounting a move to old highs.
The drawdown so far is best interpreted as corrective wave with a shot of finishing wave 5 which I’m targeting at SPX 1565-1568. This is looking at the very small picture. The intermediate picture has the SPX in wave 5 with a slew of DeMark 9 and 13 land mine counts so this market is free to move lower. Today is Fed day and if there is support to the upside, my interpretation has the SPX 1565-1568 level as where there is a high probability of failure. Otherwise, it’s best the market fails now.
On a side note, Tom DeMark made another bullish call on the Shanghai market. His previous call on that market was near perfection. For the US markets, he has officially claimed SPX 1567.40 as his target for a reversal. (updated mid trading day)