Equities continued their run to higher highs and all timeframes on the S&P 500 (SPX) are on extensions past TD Sell Setup @9, mirroring strong price momentum. Although monetary policy or the intrigue of the shape of fiscal policies to come have not weighed on equity markets, it has bounded the US Dollar Index (DXY) in a range defined by TDST Support and Resistance levels. If DXY moves below 99.43, we can expect equities to be supported as cheap money continues to supply more fuel for equities. If the DXY moves higher than 101.80, the assumption will be fiscal related policies may be difficult to deploy, and equities may suffer as well. Once the DXY gets to these juncture points, another assessment is necessary since they are other TD variables involved. For the S&P 500 (SPX), a reversal of some type is still expected soon despite the daily SPX recording a TD Sell Countdown @13 right below the 2323.89 TD Trend Factor on February 9th.
S&P 500 (SPX) SHORT/INTERMEDIATE TERM OUTLOOK: NEUTRAL
Bearish if daily SPX closes below 2337.58 on Tuesday, February 21, 2017
S&P 500 (SPX) INTERMEDIATE/LONG TERM OUTLOOK: NEUTRAL
Bearish if weekly SPX closes below 2294.69 on Friday, February 24, 2017
S&P 500 (SPX) LONG TERM OUTLOOK: BULLISH
Neutral if monthly SPX closes below 2126.15 on Tuesday, February 28, 2017