Janet Yellen will begin her first testimony with the House Financial Services Committee today and the questioning round might revolve around soft pitches. The prepared remarks revealed nothing new and any unintentional answers outside out that framework would likely shake the markets – in the same vein when Ben Bernanke first mentioned tapering back in May 2013.
S&P 500 (SPX) SHORT TERM OUTLOOK: BULLISH
Neutral if SPX closes below 1788.18 mid-day or below 1796.64 end-of-day. Bearish under 1773.43.
The 2 hour SPX recorded a TD Sell Setup @9 and although the TD Sell Countdown process has begun, the S&P is still trading under the 1801.12 TD Risk Level. If Janet Yellen’s testimony goes without any hitches, the 4 hour SPX will likely become the dominant chart. The 4 hour chart looks to finalize an 8 and 9 count today, and either late today or the beginning of tomorrow, a buyable dip or reversal can be evaluated.
S&P 500 (SPX) SHORT/INTERMEDIATE TERM OUTLOOK: NEUTRAL
Switch to bearish with a close below 1773.43, tomorrow’s bearish price flip level.
S&P 500 (SPX) INTERMEDIATE/LONG TERM OUTLOOK: BEARISH
Neutral if SPX weekly closes above 1842.27, most recent high close (updated January 27th.)
S&P 500 (SPX) LONG TERM OUTLOOK: BULLISH
Flip to neutral if SPX (monthly) closes below 1756.54 (updated February 3rd.)