Thursday, May 22, 2014

ImageThe 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. 

ImageThere 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.

ImageThe bearish scenario still exists, but the bullish element has to be recognized as well.


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.

ImageImageImageAll indices price flipped bullish, and given the inability of the bears to take control, the bulls can take over – even in a low volume, low breadth environment.


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).


 

 

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3 Responses to Thursday, May 22, 2014

  1. Steve han says:

    I think keep on eye on aapl. Hit a 9 perfected set up today and a 13 combo yesterday on the daily. Looking at the weekly’s and monthlys June should be the month but I have to respect the final squeeze before then.

    • Art says:

      Yes, I’m pleased with Apple staying with the bullish script by respecting those volatility squeezes. Has a good chance to challenge the highs now. (Not sure where you got a TD Combo 13 )

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