Equity markets remain in a violent, discombobulated state. If this continues without a S&P 500 (SPX) 10% or greater correction, US indices will eventually normalize. The only caveat is this normalization process could take place for the majority of 2015.
S&P 500 (SPX) SHORT TERM OUTLOOK: NEUTRAL
Change to bearish if SPX cannot close above 2061.99.
Due to volatility, adding shorter timeframes to gauge potential reversals would be beneficial. Using the 4 hour chart as the primary guide, the 2 hour is useful as a precursor to changes. Currently the 2 hour timeframe is on a TD Buy Setup @4 while the 4 hour SPX is on a TD Sell Setup @6. Consider if the 2 hour records a reverse price flip, that will help confirm the 4 hour can maintain the TD Sell Setup. Vice versa, if the 2 hour can keep the TD Buy Setup, it will provide a decent chance the 4 hour timeframe will record a reverse price flip.
S&P 500 (SPX) SHORT/INTERMEDIATE TERM OUTLOOK: NEUTRAL
Same as Short Term Outlook.
Not much to add here. The SPX should be able to maintain its’ TD Sell Setup today.
S&P 500 (SPX) INTERMEDIATE/LONG TERM OUTLOOK: BEARISH
Switch back to neutral if SPX closes above 2070.65.
There are early indications the weekly are in a succession of alternating price flips. If this pattern persists, staying neutral until a defined is formed and broken, will be prudent. But for now, we’ll follow the “turns” for at least a few bars more.
S&P 500 (SPX) LONG TERM OUTLOOK: BULLISH
Neutral if SPX closes below 1972.29 on January 31, 2015.