The S&P 500 (SPX) is currently trading around the 1640 level. If the TD Buy Setup on the daily chart has more room on the downside, the SPX needs to close below 1640.42 today and close below 1631.38 on Monday. It will be then a more meaningful bottom can be addressed. If there is another leg higher, the clues will come out at the last hour of closing today. Both an 8 count and a 9 count TD Sell Setup on the hourly charts starts on the last two hours of the day. So while the SPX may seem impulsive to the upside now, any signs buckling lower will suggest a still weaker market and a reason for me to flip back to bearish. If SPX does close above 1640.42 today, this will open the door to the bull case. The SPX, Russell 2000 (RUT), and the Nasdaq Composite (COMPQ), weekly counts are in the late stages, and in accordance to the monthly charts, it seems apparent if there is a new high, it will be a marginal high and not a sustainable one.
Despite laying down all the evidence a bullish turning point was coming, I was only nimble enough to capture 10 out of the 40 point ramp up. Such is trading. It’s always harder to do in real time. Back to neutral and see how this markets ends. (updated intraday)