SPX 1745 – 1770 are the battle lines for the short term. While the dips are being bought up quickly to keep the bullish outlook intact, the majority of weekly charts have recorded 9 count TD Sell Setups; therefore, caution is still warranted.
S&P 500 (SPX) SHORT TERM OUTLOOK: NEUTRAL
The 4 hour chart still has an active TD Buy Setup but it will likely terminate if the SPX stays in the trading range. The 15, 30, and 120 minute timeframes have TDST Support levels around 1745.
S&P 500 (SPX) SHORT/INTERMEDIATE TERM OUTLOOK: BULLISH
Nothing confirmed yet for another sustainable SPX breakout but the Russell 2000 (RUT) will provide clues on the overall market environment.
This is the week for the indices to put the fragmentation aside and show strength. Still watching the Russell 2000 (RUT) closely. The RUT currently has an ‘unperfected’ TD Buy Setup @8 but if can show strength on Monday by closing above 1103.59 or at least close above 1097, then that will give early indication the indices can maintain another swing high.
S&P 500 (SPX) INTERMEDIATE/LONG TERM OUTLOOK: BULLISH
SPX, Nasdaq (COMPQ), and the Russell 2000 (RUT) are all at ground zero of TD Sell Setup @9. Current expectations are the same as last week as the 9’s do not have to matter immediately for the bearish potential, since the daily counts may have found renewed strength.
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)