Tuesday, September 24, 2013

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The markets have turned higher today after trading briefly under S&P 500 (SPX) 1700. With the intermediate picture mixed, following the short term DeMark TD Sequential will help sort out price direction. There are competing short term counts that needs to be resolved. Many short term timeframes have reached downside price exhaustion as represented by the 2 hour SPX chart above. If there is sufficient buying power, then the 2 hour should be able to turn the 4 hour chart bullish. Here’s the interpretation of the 4 hour SPX TD Sequential chart. A close today above SPX 1710.07 will trigger a bullish price flip on the 4 hour chart and the challenge to the 1730 Fed high remains intact. A close below 1710.07 today will keep the TD Buy Setup active but be mindful SPX needs to continue to trade in the low 1700’s tomorrow to keep the momentum to the downside alive. 

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Positioned neutral. Although my preference is to align my positioning with the 4 hour TD Buy Setup, I will stay neutral if the SPX closes above 1705 today. Otherwise I will reposition short with a close below 1705. If SPX closes above 1710.07, I will look to the long side for which I will take the long side. (updated intraday)

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