On the current S&P 500 SPDR ETF (SPY) daily chart above, the TD Buy Setup @9 is missing. The rally last Wednesday, December 26, 2018, tallied at about 5%. That was then labeled TD Buy Setup @8. The following trading day on Thursday, December 27, 2018, another late hour rally fully erased what otherwise would have been a TD Buy Setup @9. Aside from the illiquid holiday week, the conditions for a qualified TD Buy Setup @9 were all there. Therefore, an unofficial non qualified 265.37 TDST Resistance level has been diagrammed above. The S&P 500 (SPX) equivalent is 2650.54. Although it’s not an official TDST Resistance, it still is meaningful.
Entering 2019, the S&P 500 (SPX) has set a floor at 2346.58 and a ceiling at 2940.91. Market volatility should continue to reign as long as the SPX is contained between 2650.54 (non-qualified TDST Resistance), and the recent low at 2346.58. If the current rally is just a counter rally, the SPX has about two weeks to prove bearish momentum is still intact as judged by the weekly SPX’s TD Buy Setup. On the flip side, if the low last week marked an important bottom, the SPX would need to take out the non-qualified SPX TDST Resistance at 2650.54. Short term timeframes should still be utilized through the volatility noise,
S&P 500 (SPX) SHORT TERM OUTLOOK: BULLISH
Neutral (bearish if aggressive) if the SPX closes below 2485.14 at the close of Wednesday, January 2, 2019.
S&P 500 (SPX) SHORT/INTERMEDIATE TERM OUTLOOK: BULLISH
Neutral if SPX closes below 2467.70 at the close of Wednesday, January 2, 2019
S&P 500 (SPX) INTERMEDIATE/LONG TERM OUTLOOK: BEARISH
Neutral if SPX closes above 2633.08 at the close of Friday, January 4, 2019
S&P 500 (SPX) LONG TERM OUTLOOK: BEARISH
Neutral if SPX closes above 2913.98 at the close of Thursday, January 31, 2019
Trade Trekker 