– Today’s low so far is 1560.33 as indicated by bar 6.
– If there is a lower low by today’s close, then that low will serve as a guide post for tomorrow. If not, then 1560.33 will be that guide post
-Upon the start of tomorrow’s open, any print under the low print of today begins the process for hunting a buyable low. The shorter duration charts such as the one and two hour charts are in TD Buy Countdown mode so a completion there may mark a low. Also the 127.2% Fibonacci extension at SPX 1540 could serve as a target as well.
-If the market decides to move higher without completing a 8 or 9 count TD Buy Setup today, that will be confirmed with a 4 hour close above SPX 1588.40. For early tomorrow, that number will be 1591.47. If SPX closes above 1582.77 today, then there is a good possibility the four hour count may be broken.
The benchmark 10 year US Treasury rates have been stunning. Utilizing the CBOE 10 Year Treasury Yield Index (TNX) as a proxy, the daily and weekly charts are combining together to indicate some stabilization this week. Down the line, I would expect rates to continue to rise as the monthly Keltner/Bollinger bands have just started a volatility squeeze higher.
The market is currently at bounce-worthy levels. The McClellan oscillator which has been written in previous posts is at another extreme. Therefore, to continue to play the downside is getting increasingly dangerous. I will allow the four hour TD Buy Setup to play out through tomorrow but will certainly stop myself out with a close above SPX 1582.77 today. (updated intraday)