Since last Monday’s April 24 rally on the S&P 500 (SPX), there was high probability the daily SPX would easily record a TD Sell Setup @9. Going into this week, suddenly it is not all that convincing. The daily SPX would need to record a higher close on Monday’s session at 2388.61 to keep the TD Sell Setup active. If it is unable to record a TD Sell Setup @9, that will show signs the SPX is getting weary. The Russell 2000 (RUT) already priced flipped bearish last Friday. The market may fall/trade sideways from here, regroup, and rally to new highs before a larger correction commences. This scenario will support the weekly SPX as it nears 13’s on TD Sell Countdown and TD Combo Sell. Didn’t note this up until now, but the daily SPX sneakily recorded a TD Sell Countdown @13 last Tuesday, April 25, which is showing mild significance so far.
S&P 500 (SPX) SHORT/INTERMEDIATE TERM OUTLOOK: BULLISH
Neutral if daily SPX closes below 2388.61 on Monday, May 1, 2017
Neutral if weekly SPX closes below 2355.54 on Friday, May 5, 2017
Neutral if monthly SPX closes below 2278.87 on Wednesday, May 31, 2017