Monday, May 13, 2013

ImageImageOn the four hour chart for the S&P 500 (SPX), the May 8th candle recorded a 9 count TD Sell Setup and shared it with a 13 count TD Sell Countdown. It is now apparent the outcome was just a short rest stop. Now the focus is on the daily SPX where DeMark indicators are more compelling. The SPX is coming upon a perfected TD Sell Setup fairly near the 1642.11 TD trend factor price objective. Observations are as follows:

 1> Since SPX has exceeded 1635.01 today, the minimum requirements for a TD Sell Setup has been met and it now it becomes fair game for a reversal with or without a final 9 count. 

 2>The ideal scenario would be to observe a tag of SPX 1642.11 or either today of tomorrow before reversing. 

 3> A close today below SPX 1625.96 or 1632.29 tomorrow would halt the TD Sell Setup process and the benefit of the doubt will be that a reversal has begun. ImageNot many changes on Apple (AAPL), but here is an update from the May 6th post. There is evidence that AAPL is starting a basing period. If so, prices should be contained above the 390 lows and below the 461.14 TDST resistance level. If AAPL has more upside, then I’ll focus on another upside break of 461.14 to confirm or if the 38.2% Fibonacci level holds at 435. 

Switching to bearish when SPX meets 1640 intraday or if SPX closes below 1625.96. Otherwise, I will hold out until tomorrow. (updated mid trading day)

 

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