Impulsive rally today and that makes a high possibility yesterday’s low was it. Equity markets are coming into the Thanksgiving holiday season where rallies are supported more by levitation tricks than volume or breadth. Looking forward, there is a perfect storm brewing that could be central to a significant selloff. How the Fed will stabilize rates and how the budget/debt ceiling debate is handled will be the contributing factors. Also, China is dousing in a credit crunch which is beginning to look like a Lehman moment. The one positive aspect is that the authorities in China possess the ability to ring-fence contagion unlike the US where they chose to ignore the problem.
S&P 500 (SPX) SHORT TERM OUTLOOK: BULLISH
A Bearish Price Flip has been initiated on the four hour chart and the plan is to simply follow it.
S&P 500 (SPX) SHORT/INTERMEDIATE TERM OUTLOOK: BULLISH
Many indices are are on TD Buy Setups but if today’s move higher can hold to the close, a reverse price flip to TD Sell Setups are soon likely. If the RUT can close above 1116.20 today, that will provide more confidence to the upside. The Dow will be scrutinized closer as it is coming into significant reversal signals.
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 is the same as last week. The 9’s do not have to matter immediately since the daily counts may have found renewed strength. (updated November 11th)
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)