Tuesday, July 9, 2013

ImageImageImageOn the various S&P 500 (SPX) timeframes, there are some confluent factors that suggest price exhaustion is at hand. The SPX daily chart is likely to record a 9 count TD Sell Setup today. The two hour SPX has recorded a 9 count TD Sell Setup and a 13 count TD Sell Countdown is finishing on the aggregated chart. The four hour SPX is somewhat the outlier as it still going through the TD Sequential motion. What the four hour and the two hour time frame has in common is they share the same TDST resistance level at 1652.45. As long as prices close under 1652.45, the chances increase for at least a dip. An intraday move above 1652.45 is acceptable.

ImageLinkedIn (LNKD) is currently on a 9 count TD Sell Setup. I do not have a real opinion here but I wanted to share what I see. From the last post on June 3rd, I speculated LNKD would be mired in a trading range after posting a 9 count TD Buy Setup on the same day. Since then, LNKD has made a significant enough of an upside move to consider my speculation was in error. However with a 9 count TD Sell Setup recording today, a buy here is a low probability trade. Looking forward, the dynamics are such it could move forward as it has surpassed the TDST level at 187.30. 

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As the SPX is currently pressed against the 1652.45 TDST level, it makes for an easy choice for me to conduct a short trade as the risk/reward is good. A daily close above 1652.45 stops me out. There is momentum in the market and it is probably unwise to get in front of it unless the signals to do so are clear. (updated intraday)

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