Yesterday’s move higher on the S&P 500 (SPX) was enough to tip the four hour TD Buy Setup to neutral. Given volatility is the reality now, using shorter DeMark timeframes to trade within’ the larger framework is ideal now. The chart visual above should explain it all for near term trading. The weekly timeframe will price flip at the close today and record the first bar of TD Buy Setup. The daily chart is at an important juncture to help navigate the bearish wave down. A close today above SPX 1642.81 will erase the current TD Buy Setup and revert back to neutral.
Originally, I wanted to wait until the hourly to record the TD Sell Setup before positioning short again, but since it is currently flirting with a bearish price flip, I decided to front run it. It’s certainly speculative on my part but markets are moving fast and acting slow would mean another reversal is just around the corner. I will head back to neutral with a close above 1642.81, the sight of the bullish price flip on the daily. Overall, I’m not convinced yesterday was a true reversal. (updated intraday)