The S&P 500 (SPX) 4 hour chart is on bar 4 and if it follows through the entire 9 count TD Buy Setup, this Friday would be a more emphatic bottom than what we are experiencing now. There is also a TD Combo Buy on bar 10 added for good measure. What is going against TD Buy Setup projection on the 4 hour chart is the short term candlestick bars are sprouting bullish engulfing patterns and the 2 hour chart which initially gave us the first sign of upside price exhaustion is unlikely to follow through a full 9 count TD Buy Setup. So while the intermediate bear picture is clear, the short term presents a conundrum. For the short term, SPX needs to stay under 1640 to increase the chances that the 4 hour TD Buy Setup will record a 9 count.
The SPX is currently trading just above 1640 as I finish this and just closed out all my index shorts. From here, I will re-position short if SPX closes below 1637.52 which is the close of bar
3 ( Original post, I wrote bar 3. It should read bar 1. – Art) TD Buy Setup on the 4 hour chart. (updated intraday)