The quality of the current selloff has been rather weak so any trend that may emerge will have to wait. The advantage is on the bear’s side as the potential for a downside trend is still higher than the upside. Tomorrow will bring the US non-farm payroll numbers and whether or not you believe the data is fixed, the number still has an impact on markets and if the number gets upward of 200k, another spike in rates could take hold as market participants start to discount tapering. That could provide an aggressive downside catalyst.
S&P 500 (SPX) SHORT TERM OUTLOOK: BEARISH
A series of long legged doji candles opens the possibility that the 4 hour SPX chart will not finish the active TD Buy Setup. If TD Buy Setup stays active, Friday will produce counts 8 and 9 and become an important marker of what happens longer term. Be aware Friday’s trading can be volatile with the US non-farm payroll release.
S&P 500 (SPX) SHORT/INTERMEDIATE TERM OUTLOOK: NEUTRAL
Despite all the indices are on TD Buy Setups, the QQQ is still has an active ‘unperfected’ TD Sell Setup and an unrecorded TD Sell Countdown @13. A new high in the QQQ followed by a failure to hold will give the clearest indication the markets will begin to move lower in tandem.
S&P 500 (SPX) INTERMEDIATE/LONG TERM OUTLOOK: BULLISH
Revert to neutral with a weekly close under SPX 1770.61. (updated December 1st)
S&P 500 (SPX) LONG TERM OUTLOOK: BULLISH
Will flip back to neutral with a monthly close under the January price flip level of SPX 1681.55. (updated December 1st)