Tuesday, January 7, 2014

Look for the markets to remain uncommitted near term.

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

Flip to neutral if SPX closes above 1831.40 mid-day or 1831.47 end of the day.ImageImage

Even though the recent selloff has been shallow, both the 2 hour and the 4 hour SPX have active TD Buy Setups. It appears the markets will find support today, no later than late today or early tomorrow as the short duration SPX charts are about to reach selling exhaustion. The 2 hour can achieve a TD Buy Setup @9 late in the session and for the 4 hour, TD Buy Setup @8 at the close. It is unclear if the TD Buy Setups will follow through given the selling has lacked conviction. 

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

Flip to neutral if SPX closes above 1831.40 mid-day or 1831.47 end of the day.Image

If we were to follow TD Buy Setup exactly, a reverse price flip won’t occur unless the SPX closes above 1848.36. But tactically, it makes more sense to use tomorrow’s potential price flip at 1831.98 since the markets are acting in consolidation mode and it makes sense to be aligned closer to the short term charts. 

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

Bearish if SPX weekly closes below 1805. If outlook remains neutral at the end of the week, stops will gradually rise along with a potential change to bullish. (updated January 6th)

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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)

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