Equity markets continue to rally this month, but daily and long term TD price indicators are about to show price exhaustion as soon as this week. Digging in more detail, the monthly S&P 500 (SPX) is about to complete a TD Sell Setup @9 this month. Looking at the weekly SPX, the active TD Sell Setup indicates the final week of December would be ideal for the pending pullback. Moving in closer, if the daily SPX completes another new closing high, it will open the window for a selloff from Monday’s close to the end of the week. While cash on the sidelines will likely make its way back into equities in 2017, the bears best hope for a complete bull trap is late this month/early January.
There are a lot more charts shown this week than usual for reference.
S&P 500 (SPX) SHORT/INTERMEDIATE TERM OUTLOOK: NEUTRAL
Bearish if SPX closes below 2241.35 on Tuesday, December 13, 2016.
S&P 500 (SPX) INTERMEDIATE/LONG TERM OUTLOOK: NEUTRAL
Bearish if the SPX closes below 2181.90 on Friday, December 16, 2016.
S&P 500 (SPX) LONG TERM OUTLOOK: BULLISH
Neutral if monthly SPX closes below 2170.95 on Friday, December 30, 2016.