The media analysts are beginning to recognize uncertainty for the S&P 500 (SPX) since the market has taken back all of last Wednesday’s gains. While much of the focus of the SPX will be on 1700, a close today under 1704.76 will record a bearish price flip on the daily and help tilt the bull/bear picture to the bear’s side. The majority of the short duration charts have TDST support clustered between 1682.22 – 1685.62. Taking the most conservative level, a close under SPX 1682.22 in the near future should bring out more bears.
The Russell 2000 (RUT) is holding relatively well. If the RUT continues to show non-confirmation relative to the SPX, then my expectations for major downside losses will be continue to be tempered.
Last Friday had the SPX weekly and the related indices trading on fresh TD Sell Setups. I was alerted about the SPDR S&P 500 (SPY) weekly chart yesterday as it recorded a 13 count TD Sell Countdown last week. My primary focus is on the SPX but having the SPY weekly produce a 13 will force me keep my eye on this alternative price exhaustion signal.
Bullish and bearish elements are still there so following the price is my best strategy right now. Will continue to stay short but I would like to see a close near the lows for the SPX. The RUT needs to show more weakness as well. (updated intraday)