The surprise QE announcement by Mario Draghi and the weak non-farm payroll numbers kept equities higher. Data for the upcoming week is light and without any obvious catalyst, the sights for the S&P 500 (SPX) are at the 2027.81 TD Trend Factor level. It is considered an important level, and it especially powerful if combined with TD Sequential. DeMark had experimented with Fibonacci ratios and came up with these TD Trend Factor levels he often cites in the media as major reversal points. Just as the previous 1979.49 TD Trend Factor on the SPX, recorded back in July 3, 2014, these levels often provide equities angst. But they should always be paired with TD Sequential to strengthen the price exhaustion signal.
S&P 500 (SPX) SHORT TERM OUTLOOK: NEUTRAL
Bullish if SPX matches or exceeds 2011.17 intraday and does not close below 2005.56 mid-session OR bearish if SPX closes below 1997.71 end of day.
Since the second ’13’ recorded on August 26, 2014, there has been a set of four alternating price flips, indicating the consolidation efforts of the SPX equities. If the short term 4 hour SPX is successful in turning bullish, the next TD Trend Factor has been identified at 2027.81. Once again, TD Trend Factors are Fibonacci related stopping points, and combined with TD Sequential, it offers added confidence of a possible reversal.
S&P 500 (SPX) SHORT/INTERMEDIATE TERM OUTLOOK: BULLISH
Switch to neutral if SPX closes below 1997.71, same as Short Term Outlook.
S&P 500 (SPX) INTERMEDIATE/LONG TERM OUTLOOK: BULLISH
Switch to neutral if SPX closes below 1955.06 on Friday, September 12, 2014.
S&P 500 (SPX) LONG TERM OUTLOOK: BULLISH
Neutral if SPX closes below 1883.95 on September 30, 2014.