The number of widely followed Nasdaq stocks trading off the TD indicators had been noted recently. Among them is Netflix (NFLX), which recorded a “13” TD Buy Countdown about 2-3 weeks ahead of other stocks in the momo class. Since NFLX is ahead of the curve, it can be observed as a leader for other stocks and indices. NFLX will record a “9” count TD Sell Setup today, right in the area of the standard 61.8% upward Fibonacci retracement. Watch to see If NFLX can eventually power higher into TD Sell Countdown. It may hold some predictive power for other stocks looking to play catch-up.
There are a number of high profile market watchers – Marc Faber, Ralph Acampora, and even Tom DeMark (see above Dow chart) beating the bear drum for a major correction. The market has yet seen a significant downturn, but the argument of a topping process or even a “flash crash” is valid. But from the Nasdaq stocks bouncing off the TD Buy Countdown “13’s”, the Russell 2000 (RUT) recording a “9” on the weekly TD Buy Setup, the non-selloff in the S&P 500, the correction may have to wait and possibly see another leg higher.
S&P 500 (SPX) SHORT TERM OUTLOOK: NEUTRAL
Bearish if SPX closes below 1873.11or bullish if SPX trades closes above 1885.08 with an intraday high at 1900 or above.
S&P 500 (SPX) SHORT/INTERMEDIATE TERM OUTLOOK: NEUTRAL
Same as Short Term Outlook: Bearish if SPX closes below 1873.11or bullish if SPX trades closes above 1885.08 with an intraday high at 1900 or above.
S&P 500 (SPX) INTERMEDIATE/LONG TERM OUTLOOK: 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).