More central bank action, this time from China’s PBoC, keeps the market juiced. From a TD indicator perspective, equity markets are extending to some exhaustion points on the weekly charts. These exhaustion points were absent from October’s down draft. Since there is some confluence with the daily charts, some uncertainty and volatility is expected. In hindsight, switching to bullish was the way to go on the short term charts. As a result, tactically staying patient and neutral until the character of the pullback can be judged.
S&P 500 (SPX) SHORT TERM OUTLOOK: NEUTRAL
Bearish if SPX closes below 2051.80, the bearish price flip on the daily.
S&P 500 (SPX) SHORT/INTERMEDIATE TERM OUTLOOK: NEUTRAL
Bearish if SPX closes below 2051.80, the bearish price flip on the daily chart.
In an effort to look for stress points in the bullish trend, the upside burst last Friday looks unconvincing if judged by the Nasdaq and the Russell 2000. Contradicting this, the Dow bursted to the upside right after recording a pair of “13’s”. The Dow needs to begin reversing to keep the TD exhaustion signals relevant. The SPX “13” watch is still in progress for TD Sell Countdown “13″, currently at “11”.
S&P 500 (SPX) INTERMEDIATE/LONG TERM OUTLOOK: NEUTRAL
Bearish if SPX closes below 2018.05 on November 28, 2014.
The Nasdaq has recorded a TD Combo Sell “13” last week, and this week can bring a whole slew of “13’s” for the SPX and the Dow if another higher high and higher close come together. The Russell 2000 is still mired in a trading range.
S&P 500 (SPX) LONG TERM OUTLOOK: BULLISH
Neutral if SPX closes below 1930.67 on November 28, 2014.