Keeping with the theme of individual stocks bouncing off their respective “13’s”, FireEye (FEYE) is another key example. Probably one of the best plays for the cyber security sector, the current environment for FireEye is set up bullish. There is the TD Buy Countdown @13 that is holding on the daily chart, and there is the weekly FEYE chart which recorded a “9” on TD Buy Setup last week. Closing the gap at 36.75 would be the logical minimum expectation.
The trading range for the SPX continues to rule. The bears had plenty of time to do damage since the beginning of the year, but continues to languish sideways. Using the Russell 2000 (RUT) as a roadmap, the weekly RUT is now on a “9” count TD Buy Setup, suggesting a digestion period is coming up, especially if stocks such as FEYE can manage to hold above their recorded “13” levels.
S&P 500 (SPX) SHORT TERM OUTLOOK: NEUTRAL
Bearish if SPX closes below 1870.85 (tomorrow’s daily price flip) or bullish if SPX closes above 1894.21 today.
Aggregating the short duration timeframes, the 15/30/60 minute TDST Support levels are between 1868.38 – 1869.56. Taking TD Buy Setup out of the equation, closing under these levels today will be interpreted as bearish. Also, holding out for an upside bull surprise today, closing above the short duration TDST Resistance levels between 1893.96 – 1894.21 can seal it.
S&P 500 (SPX) SHORT/INTERMEDIATE TERM OUTLOOK: NEUTRAL
Back to bearish if SPX closes below 1870.85, tomorrow’s bearish price flip.
S&P 500 (SPX) INTERMEDIATE/LONG TERM STATUS: NEUTRAL
Switch to bearish if weekly SPX closes below 1863.40 on May 23rd (updated May 19th).
S&P 500 (SPX) LONG TERM OUTLOOK: BULLISH
Flip to neutral if the SPX does not trade above 1897.28 during the month of May and closes below 1836.27 on May 30th, the 8 month MA. Alternatively, flip to neutral if SPX closes below 1782.59 on May 30th (updated May 5th).