The next bout of volatility is coming, and as indicated by the S&P 500 (SPX) TD counts, the SPX just needs to orchestrate one more rally to begin the consolidation process. Other related indices are also mirroring the SPX, and we’ll make note of any significant charts when the time comes. The details for the SPX are outlined below.
S&P 500 (SPX) SHORT/INTERMEDIATE TERM OUTLOOK: BULLISH
Neutral if SPX closes below 2168.50 on Monday, August 22, 2016.
S&P 500 (SPX) INTERMEDIATE/LONG TERM OUTLOOK: BULLISH
Neutral if weekly SPX closes below 2173.60 on Friday, August 26, 2016.
As long as the weekly closes above 2173.60 this Friday, the first of three price exhaustion signals will be recorded. A trifecta of the TD Sell Setup @9, TD Sell Countdown @13, and TD Combo Sell @13 can occur if the weekly SPX closes at or above 2184.05, and a recorded weekly high of 2193.81 or above.
S&P 500 (SPX) LONG TERM OUTLOOK: BULLISH
Neutral if monthly SPX closes below 2065.03 on Wednesday, August 31, 2016.