The S&P 500 (SPX) is at a point where some drawdown is expected. The notable chart is on the SPX weekly where a TD Sell Setup @9 has been recorded. To gain even more perspective, the Nasdaq Composite (COMP) and the Russell 2000 are shown below.
For the weekly RUT, the TD Sell Setup@8 is ‘perfected’ and free to move lower. Similar to the SPX, both the COMPQ and RUT will likely complete their TD counts below their respective TDST Resistance, providing additional impetus to the bears. If a selloff becomes a bit severe in the coming weeks, SPX 1810 is expected to hold as outlined in previous posts.
S&P 500 (SPX) SHORT TERM OUTLOOK: NEUTRAL
Bearish if SPX closes below 2061.72, the daily SPX bearish price flip.
S&P 500 (SPX) SHORT/INTERMEDIATE TERM OUTLOOK: NEUTRAL
Bearish if SPX closes below 2061.72
Last week produced another trend exhaustion point with TD Sell Countdown recording a ’13’. If the active TD Sell Setup becomes nullified, especially if the occurs below the 2078.36 TDST Resistance level sometime this week, then expectations for additional upside is greatly diminished.
S&P 500 (SPX) INTERMEDIATE/LONG TERM OUTLOOK: NEUTRAL
Bearish if weekly SPX closes below 2035.94 on Friday, April 22, 2016
Classic TD suggests that if TD Sell Setup records a “9” just below the TDST Resistance level, a potential trend change is in the works. This describes exactly what is happening now, and the weekly SPX gets a chance this week to prove the bull run from the rally low of 1810.10 (February 12, 2016) will turn into a bear run. A close below 2035.94 this week should do it.
S&P 500 (SPX) LONG TERM OUTLOOK: NEUTRAL
Bullish if monthly SPX closes above 2107.39 or Bearish if monthly SPX closes below 1850.61, the weekly TDST Support level on Friday, April 29, 2016.