It is becoming more evident that S&P 500 (SPX) 1700 level is the bull/bear line. More specifically SPX 1697.32. That level defines whether the 9 count TD Buy Setup can stay active or not. If it does break to the upside, it will not necessarily be the end all for the bearish side unless market breadth begins a startling initiation to the upside. If SPX breaks under the 1683-84 range, then another confirmation piece will be added to the bear picture. If the SPX does break the downside, then a TD Buy Setup will likely record bar 8/bar 9 late Friday/early Monday. Continued sideways price action will also revert the TD Buy Setup back to neutral. Here are the daily counts for the various indices. Note that I have replaced the Nasdaq with the PowerShares (QQQ). The predictive power is more accurate on QQQ than the Nasdaq as the DeMark counts are better aligned with the Q’s.
There are no ‘blurred lines’. If SPX closes above 1697.32 today, I will flip back neutral. (updated intraday)