Yesterday’s price action was so quiet that all TD Setups on the daily charts are neutral for the major markets. Overall outlook is bearish as my belief the market will see a lower low before a higher high. But trading this path is tricky as minimizing risk is the first order. Let’s make an assumption that today’s low is the low. That would imply a completed Elliot B wave and we should see higher prices probably in the S&P 500 (SPX) 1670 range. I’ll consider that scenario if the four hour TD Sequential can agree on direction but it is not in agreement. The TD Sell Setup that was active has just been erased and could…maybe…represent a turning point to the downside. Since my reference point at SPX 1643.09 is the close of today, it marks a decent edge to get bearish as any damage will be minimal since current prices are trading near the 1643.09 price point. First Solar (FSLR) is coming up on a potential turning point if not at 59, the current high. The price action is impulsive enough to suggest more upside eventually but FSLR is currently upon a final 13 count on TD Sell Countdown. This is suggesting more range bound trading or an outright sell. Looking at the weekly chart of FSLR, it also concurs the bearish view as it has already established a 9 count TD Sell Setup.
It’s not a big edge but I’m taking shot on the short side here and if SPX closes under 1643.09, we’ll stay bearish. (updated intraday)