Tomorrow, the FOMC meets again and it should be an easy decision to say the Fed will not make any adjustments to monetary policy. However, that consensus should already be discounted and instead it would be more important not to get caught up into the lull of complacency as tomorrow will likely provide the first technical test since the government shutdown.
S&P 500 (SPX) SHORT TERM OUTLOOK: BULLISH
If the SPX closes on the high of the day, the 4 hour chart will likely record a TD Combo Sell @13. In addition, if there is another push higher tomorrow, both the active TD Sell Setup and TD Sell Countdown will get awfully close in recording a full set of 9’s and 13’s. In light of this, stops are getting tighter as the market appears to be getting too vertical.
S&P 500 (SPX) SHORT/INTERMEDIATE TERM OUTLOOK: BULLISH
SPX is within’ 10 points of the confluent targets at 1777. Tomorrow will be key as to how much fuel is left in this current bull leg.
With all or almost all daily charts sporting 9’s and 13’s, and with the SPX and the Dow getting close to or at resistance, it would be natural to think tomorrow’s Fed day would be a good catalyst for the market to suffer some sort of setback.
S&P 500 (SPX) INTERMEDIATE/LONG TERM OUTLOOK: BULLISH
Most major indices will begin the week on TD Sell Setup @8 which is the beginning of the price exhaustion window.
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)
STOCK SETUP UPDATE: APPLE (AAPL)
The 600 target still looks reasonable as the weekly and monthly charts are still constructive but Apple merits watching in the days ahead before pinpointing another long entry point.