On the four hour S&P 500 (SPX), the 9 count TD Buy Setup and the 13 count TD Buy Countdown are running concurrently. If the market stays impulsive to the downside, the next test period will come next Tuesday. I do not have definitive price targets as they are sporadic but the first order for the bears is to close below 1582.77, the daily TDST level. Then we have 1568-1570. These levels are not far away so we will check back on Monday and see how they reconcile with the current TD Sequential count on the four hour chartContinuing on the discussion about the SPX daily TDST level at 1582.77. The market is currently pressed above it. A close below that level will serve as further confirmation that it could be a long Summer. The ETF, iShares Emerging Market Index (EEM), is representative of individual stocks across the globe and it has spilled over. Using the weekly charts which has a better rhythm than the daily charts as far as TD Sequential is concerned shows there is more room to the downside over the long term.
CNBC market watchers are beginning to recognize this downturn but they have not respected it yet. This selloff looks impulsive which equivalates to an Elliott C wave or a 3 wave. If so, the rallies are sharp but are quickly sold off. We’ll monitor the market through next Tuesday when a possible 9 and 13 count is due to arrive on the same day for the four hour chart. (updated intraday)