Friday, July 26, 2013

ImageMarket complexion is choppy and still no clarity despite the S&P 500 (SPX) registering lower lows. if we strictly follow the 4 hour TD Sequential, it is working lower but not impulsively. But there was a 13 recorded yesterday so another piece is added for price exhaustion. Not exactly confluent with other short duration time frames but it is there. ImageImageImageImageImageThe daily SPX and weekly charts charts for the Dow Industrials (DJI), Nasdaq Composite (COMPQ), and the Russell 2000 (RUT) are scattered. The Dow was the first to record a 13 last week and the SPX is very close. Nasdaq and the Russell appears to be recycling higher. So there is a conundrum. Bottom line is the indices were in the sweet spot back in May. Indices are still in the parameters of price exhaustion but the risk of recycling higher is growing.  

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If there is a chance for the bears to break it wide open, it is today. It appeared they would have their way early in the session but now it is back to the ambiguous area as the SPX is trading around the middle of the range of the day. Flipped back to bearish and added as this SPX 1685-87 area looks like a good risk/reward trade. I will follow the 4 hour TD Buy Setup. The 4 hour will invalidate if SPX closes higher than 1686.03. Hard stop at the 1687.18 bull/bear level. (updated intraday)

 

 

 

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