Markets received the second surprise move in less than a week’s time. The first being the Swiss National Bank releasing the Swiss Franc peg against the Euro and just a couple days ago, Chinese stocks plunged on news that margin trading will be cut off. Although there was no contagion, events like these often brings along collateral damage. For the indices, this remains a conflicting market, as it continues to carve out a range.
S&P 500 (SPX) SHORT TERM OUTLOOK: NEUTRAL
Change to bearish if SPX closes below 1992.86.
Due to volatility, the 2 hour SPX timeframe is added to the 4 hour timeframe. Although both timeframe’s TD Sequential/Combo have not reached price exhaustion potential, the SPX is respecting the current TDST Support right at 1991.75, which is coincident to the 150 day moving average. Breaking under that level can have larger negative implications.
S&P 500 (SPX) SHORT/INTERMEDIATE TERM OUTLOOK: BEARISH
Switch the neutral if SPX closes above 2023.03.
S&P 500 (SPX) INTERMEDIATE/LONG TERM OUTLOOK: BEARISH
Switch back to neutral if SPX closes above 2058.20 and the RUT closes above 1198.80.
S&P 500 (SPX) LONG TERM OUTLOOK: BULLISH
Neutral if SPX closes below 1972.29 on January 31, 2015.