Focusing solely on the S&P 500, there is price exhaustion, as defined by TD Sequential and TD Combo, across the daily and weekly timeframes. On the monthly timeframe, ’13’s’ have already been recorded this year. Even though the SPX is currently trading about the designated monthly ’13’ counts, a selloff is still viable considering the SPX is still trading within DeMark’s risk level at 2105.30.
S&P 500 (SPX) SHORT TERM OUTLOOK: BEARISH
Flip back to neutral if SPX closes above 2067.03, the daily bullish price flip.
The SPX is primed to explore the downside again. The TD Sell Setup has been ‘perfected’, (denoted by the down blue arrow) and followed by a bearish price flip. The last part of the equation is to see if the SPX has the ability to cross under the TDST Support at 2049.35.
S&P 500 (SPX) SHORT/INTERMEDIATE TERM OUTLOOK: BEARISH
Neutral if SPX closes above 2067.03.
The daily SPX trend that started October 17, 2014, is at the point of price exhaustion. It is here where new narratives can be drawn out – choppy to higher – flat to lower – or just another hard selloff.
S&P 500 (SPX) INTERMEDIATE/LONG TERM OUTLOOK: NEUTRAL
Bearish if SPX closes below 2039.82 on December 5, 2014.
S&P 500 (SPX) LONG TERM OUTLOOK: BULLISH
Neutral if SPX closes below 2003.37 on December 31, 2014.