Quick update before the weekend. Another day, another record high. The risks are growing for equities but there are no sell signals as all TD Sell Setups are still active on all daily index charts.
S&P 500 (SPX) SHORT TERM OUTLOOK: BULLISH
The SPX 2 hour chart is still in a TD Sell Setup with 14 consecutive closes above the close 4 bars earlier. This is a useful guide to allow traders to stay long despite the growing risks. The SPX 4 hour chart recorded a TD Sell Setup @9 yesterday and all is left is to see if it wants to go into TD Sell Countdown. The combination of short duration support confluence is bumped higher from yesterday – now between SPX 1826.82 to 1833.27.
S&P 500 (SPX) SHORT/INTERMEDIATE TERM OUTLOOK: BULLISH
The Dow’s TD Sell Countdown finalized yesterday with a 13 count and the Russell 2000 (RUT) will probably add to the daily confluence today with a TD Sell Setup @9. Both the SPX and the QQQ will record a 9 count TD Sell Setup on December 31st. Further gains beyond that day without a price flip will increase the prospect of TD Sell Countdown coming into the picture.
S&P 500 (SPX) INTERMEDIATE/LONG TERM OUTLOOK: NEUTRAL
Switch to bearish with weekly SPX close below 1805.81 (updated December 23rd)
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)