Monday, August 5, 2013

ImageImageThe markets are at price exhaustion levels as measured by TD Sequential this week. In an effort to answer the ‘when’ question, the 4 hour S&P 500 (SPX) chart is my preferred choice. The current count is on bar 7 on TD Sell Setup. Bar 8 will record if the close of the day is at least SPX 1706.48 and this will set up the beginning of a potential turning point starting tomorrow. The daily is nearing a final 13 count of TD Sell Countdown and could also finalize if SPX can push higher. The 1711 Fibonacci price target is holding and may indeed be the phantom resistance. Short term TDST support levels are clustered around 1680. Also note the 13 count TD Combo Sell recorded last Friday. ImageGetting back to Apple (AAPL) again, Apple will record a 9 count TD Sell Setup today . Since Apple cleared the 450.72 TDST resistance level, the probability of Apple phasing into a 13 count TD Sell Countdown mode is high. This will suggest Apple can endure pullbacks and see higher prices down the road. Also supportive is the weekly count for AAPL is at bar 4 on TD Sell Countdown and the monthly had a bullish price flip last month erasing the potential 9 count TD Buy Setup. ImageSimilar to Apple, Facebook (FB) is also recording a 9 count TD Sell Setup today. There is a decent chance for a TD Sell Countdown lateral but the weekly count is at bar 8 this week. How constructive the pending selloff will offer more clues. But for now, FB needs to rest as proposed by the TD Sequential indicators.

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My script is to follow the 4 hour TD Sell Setup and position bearish at some point tomorrow if there is a ‘perfected’ 9 count. If the count is broken today with a close under SPX 1706.48 but holds 1700, I will still wait to see how prices unfold tomorrow. (updated intraday)

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