Tuesday, August 6, 2013

ImageFollowing the 4 hour chart on the S&P 500 (SPX) is no longer useful at the moment. The TD Sell Setup was active up to bar 8 and did not ‘perfect’ the count by meeting or exceeding bar 6’s high. With today’s impulsive move down, it was good enough to produce a bearish price flip and negating the final 9 count. ImageImageImageTaking inventory on some of the daily counts, SPX completed a 13 on TD Combo Sell last Friday but it one count short of recording a 13 on TD Sell Countdown. The Russell 2000 (RUT) completed a pair of 13’s when the RUT recorded a 13 count TD Sell Countdown yesterday.  The one holdout is the Nasdaq Composite (COMPQ). It is one count short of recording a TD Sell Countdown. ImageTo address the one count deficiency of the COMPQ, a look at the ETF component, the PowerShares (QQQ) shows a 13 TD Sell Countdown last Friday and a ‘perfected’ 8 count yesterday on TD Sell Setup. As a whole, the pieces are in and showing multiple price exhaustion signs

__________________________________________________________________________________________

While there was room for the markets to move marginally higher, it did not take it and today is the first sign of a possible shift of momentum. Since the SPX 4 hour chart never completed a ‘perfected’ TD Sell Setup, I was not nimble enough to position short ahead of the downturn. Hopefully the market will allow for a second chance to capture a more favorable risk/reward level. A close below SPX 1698 will certainly put me in a place to participate on the short side.  (updated intraday)

Advertisements
This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s