Markets are showing profit taking behaviour from yesterday’s high. This keeps the possibility of another record run for the markets. There is also bubble talk from the likes of Bill Gross, and Larry Fink. If this is a bubble, then these bubbles should be embraced because they can persist for a long time. Markets will experience corrections but turn and blink, Tesla will be at 1000, and Google will become the most valuable company by market value. Picking stocks because it “looks good” even though the market “looks unsustainable” will showcase the broken linkage between theory and reality. The endings are subtle and they usually begin with page 3 news in the Financial Times or the Wall Street Journal. Keep notes.
S&P 500 (SPX) SHORT TERM OUTLOOK: NEUTRAL
Given how juiced the markets are, a 1-2% loss in the SPX may just be it. That would be a good area to watch to see if bullish candles formate. No hard downside targets yet but 1745 -1750 looks viable before the next proposed run higher. More data points are needed.
S&P 500 (SPX) SHORT/INTERMEDIATE TERM OUTLOOK: BULLISH
The TD Sell Setup is technically still active by recording 16 consecutive bars for each closing bar is higher than the close of 4 bars prior. Until that pattern breaks, there will be no propensity for a more serious downturn.
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. (last updated October 28th)
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)