Thursday, July 18, 2013

ImageA main aspect of DeMark’s TD Sequentials is the ability to identify trends that are not discernible on the daily chart. From the S&P 500 (SPX) chart, note how all the TD Sell Setups react when a 9 count bar is reached. Tie in other indicators and there is a reasonable point of evaluation for a reversal or continuation. In this case, since the rally that started back on June 24th, the market stalls before re-setting higher. ImageUntil the SPX shows more signs that a meaningful reversal is at hand, I will stay with the 8 day exponential moving average as long it correlates with the upward trendline. Image

 

Update to the iShares Emerging Markets Index (EEM), the weekly chart will likely price flip bullish this week. Pending retracement looks buyable as along it doesn’t reverse flip bearish.

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Bernanke is finishing his second day of his testimony. I trust him he will continue to be market friendly. SPX should be a close-near-the-highs day. Any significant giveback at the end of the day will adjust my bullish outlook. (updated intraday) 

 

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