Monday, October 21, 2013

Indices are beginning to show clusters of 9’s and 13’s starting today. The basic assumption is the market will reverse from the highs soon. But the character of the reversal can take on the form of mild selling and that is the expectation going forward since the markets have just started another bullish initiation. If all this is just one big bull trap, then this is the week it needs to creep in. 

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S&P 500 (SPX) SHORT TERM OUTLOOK: BULLISH

Will flip to neutral if a 9 count TD Sell Setup records under 1750 or fails to record a TD Sell Setup. Will also flip to neutral if SPX trades above 1750 and subsequently trades below it on the same 4 hour time frame.Image

1750 SPX is a perfect symmetrical target based on the August 28th lows and September 18th highs down to the October 9th lows. If the SPX continues higher towards 1760, then the 13 count TD Sell Countdown will take over and give the message that sideline money cannot wait for pullbacks.

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S&P 500 (SPX) SHORT/INTERMEDIATE TERM OUTLOOK: BULLISH

The ideal day for the markets to pause will be tomorrow but should present buying opportunities going forward.ImageImageImageImage

The SPX are coming into clusters of 9’s and 13’s and it has the support of the related indices. 

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S&P 500 (SPX) INTERMEDIATE/LONG TERM OUTLOOK: BULLISH

SPX has cleared the 1711.44 closing marker for a continuation of more gains. There will be further confirmation if the SPX closes above the 1737.48 risk level established by the August 5th weekly close. (last updated October 18th)

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S&P 500 (SPX) LONG TERM OUTLOOK: NEUTRAL

Market is extended and within’ the risk level parameters of the 9 and 13 TD Sequential clusters in April and May. (last updated September 30th)

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STOCK SETUP: APPLE (AAPL)

Apple has produced new highs and further gains to the 600 area are probable. However, the daily chart are flashing price exhaustion signaling a near term pullback soon.ImageImage

Apple is running into an area of price exhaustion as shown on the daily chart. It is trading higher ahead of the new iPad announcements tomorrow and while Apple is usually synonymous with innovation, there is nothing to suggest anything but some re-tooling on their existing iPad line. Looking at the long term monthly chart of Apple, there appears little in the way of resistance until it gets closer to 600 and therefore if tomorrow’s event presents a selling opportunity, it should viewed as temporary. 

 

 

 

 

 

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