The active TD Buy Setup on four hour S&P 500 (SPX) chart currently shows the SPX on bar 6. Interesting enough, it is on track to complete a 9 count on the close of Thursday – the day before non-farm payrolls are announced. If there was a report that can turn the markets around, it will be that one. We’ll keep on eye on this and see if there is a ‘perfected’ TD Buy Setup tomorrow before going further. Ideally, if the SPX four hour chart does follow through with a rally upon a completed 9 count TD Buy Setup, the bears do not want to see a rally significant enough to disturb the daily TD Buy Setup count or we will have to bring the discussion of higher highs back on the table again. Revisiting the iShares Japan Index (EWJ) again. It’s getting close to a lower low that would ‘prefect’ the EWJ TD Buy Setup. It should bring some stability to the Japanese equity markets when it occurs. Coincide that with the 4 hour SPX TD Buy Setup, that will be another confluent addition for at least a bounce in the US equity markets.
Equity markets are selling off in a menacing way today. Staying bearish until tomorrow where the four hour TD Buy Setup is scheduled to finish. Depending on what happens intraday Thursday, we’ll access a possible reversal for Friday. (updated intraday)