The 1687.18 S&P 500 (SPX) looks like the bull/bear line. It is the May 22nd breakout level and where the 30 minute and 60 minute TDST support levels resides. The 4 hour chart has already reversed the 9 count TD Sell Setup but the TD Sell Countdown and TD Combo Sell counts are still active. So while the markets are wobbly, they are not at the full upside potential so I remain on alert. Here are the updated daily counts for the Nasdaq Composite (COMPQ) and Russell 2000 (RUT). All very close in signaling a give back. There are no charts for the Dow Industrials but it is worth mentioning that it has already reached a daily ‘perfected’ 9 count for TD Sell Setup days ago and holding. Also, the S&P futures have recorded a daily 13 count TD Combo Sell a couple days ago. For added measure, if the SPX should close below 1689.37, a bearish price flip will record. If done, TD Sell Setup would register as a 19 count or 9 +10 count. Pretty amazing.
The bulls had every opportunity to really push prices higher. Between Apple’s better than expected earnings, the brush-off from the lousy HSBC PMI numbers for China and the turnaround for the European PMI’s, I was fully expecting SPX to breach the 1700 level and watch a bunch of 13’s to show up. Since I am following the lead for the 4 hour chart, I am positioned bearish and hoping for a downside surprise. Note: Just as I finished writing this, SPX 1687.18 is being taken out. Let’s see if it can stay under it. (updated intraday)