Wednesday, November 6, 2013

After the S&P 500 (SPX) traded above yesterday’s bullish price flip at 1763.31 yesterday, a final minute loss pushed the SPX a hair below that designated bull trigger. However, today’s bullish opening gave a first look that there is a bit more upside for the SPX.

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

Switch to bullish with a SPX close above 1768.05Image

If the SPX can close above 1768.05 today, that will keep the TD Sell Setup on the 4 hour chart intact. Note that this is an aggressive bullish call since the 4 hour SPX is coming into a TD Sell Countdown @13 and many short duration timeframes reached price exhaustion 9 and 13 levels this morning. The hope here is that the potential price exhaustion markers will be short-lived. 

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

The Dow has busted above resistance but the higher beta indices such as the QQQ and RUT are waning. The SPX is in the middle but has a bullish edge. 

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Markets are mixed up. SPX is alternating price flips. The Dow has renewed life  The QQQ’s are technically bullish but a close below 82.79 may change that. The RUT is technical bearish but a close above 1100.15 may change that. The message is vigilance.

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

The SPX, Nasdaq, and the Russell will start their respective 9 counts next week. These counts are significant as it marks the central point of price exhaustion. They do not have to matter right away and that is the current expectation. (updated November 1st)

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

SPX has decisively closed above the May highs and current TD Sell Setup @9 + 7 remains unbroken. Will flip back to neutral with a monthly close under 1685.73. (updated November 4th)

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STOCK SETUP UPDATE: TESLA (TSLA)

Tesla will record a ‘perfected’ TD Buy Setup @9 today which sets up near term support and the first major bull/bear inflection point. Since the weekly charts have room to go lower, expectations are higher that Tesla will eventually transition to TD Buy Countdown or a fresh TD Buy Setup on the daily. ImageImage

Nothing wrong with Tesla’s earnings on a whole except for the price reaction. Tesla’s TD Sequential history during the bull run did a decent job as every 9 or 13 produced a minor set back before powering higher. Now the tides are turned and Tesla will record the first TD Buy Setup. This is significant as it suggests Tesla will have to work extra hard before another bull trend comes into motion. The company just needs to execute on their vision. Since the daily TSLA chart shows a TD Buy Setup @9, this is a inflection point. There should be some initial support but the weekly charts are more supportive for more turmoil. There are no hard targets yet but a couple Fibonacci retracement levels at 130 looks doable. If TD Sequential and the overall general market environment is bullish, there could be some buy interest there. 

 

 

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One Response to Wednesday, November 6, 2013

  1. Jay Whitcraft says:

    FYI…

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