Although the S&P 500 (SPX) is still range bound, volatility is building. Here is how it can all shake out between now and the first part of 2017. On the weekly SPX, the first price exhaustion signal, TD Sell Countdown @13, has been recorded. This is the first cautious signal and the second can come if the weekly SPX can close above 2184.05, which will be TD Combo Sell @13. This can also coincide with a daily SPX TD Sell Setup @9. In any event, the SPX is free to sell off now. A good confirmation that any selloff may be serious is if the SPX drops below 2097.90, the daily TDST Support level.
Now if monthly SPX manages to close above 2098.86 on October 31, 2016, that will keep the monthly TD Sell Setup intact and record a @7. This could mean potential high in November with a TD Sell Setup @8 or December with a TD Sell Setup @9. This paves the way for a more stronger selloff in January 2017.
S&P 500 (SPX) SHORT/INTERMEDIATE TERM OUTLOOK: NEUTRAL
Bearish if SPX closes below 2097.90 on any day during the week.
S&P 500 (SPX) INTERMEDIATE/LONG TERM OUTLOOK: NEUTRAL
Bearish if SPX closes below 2097.90 on Friday, October 7, 2016.
S&P 500 (SPX) LONG TERM OUTLOOK: BULLISH
Neutral if monthly SPX closes below 2098.86 on Monday, October 31, 2016.