The 1687.18 on the S&P 500 (SPX) is proving to be the polarity level. With various indices wedging to work off excessive overbought conditions, and some unfinished TD Sequential counts, I remain alert that this selloff could be temporary. The 4 hour TD Buy Setup is active on bar 3. It will be tested as some shorter timeframes are showing 9’s and 13’s. It will not take much to reverse the downside. Still watching the 1687.18 as a place to switch gears. Just an observation on Facebook (FB). FB has a nice move off of earnings and there may be more momentum for the upside. Facebook broke out of the Keltner/Bollinger volatility channel a couple weeks ago and may have enough energy to keep it going considering FB has a relatively high nominal short interest.
Will tentatively stay bearish per the 4 hour TD Buy Setup. If the really short term TD Sequentials can help push the indices above SPX 1687.18, I’ll have a reason to switch sides. (updated intraday)