The S&P 500 (SPX) has an active TD Buy Setup @8 and yet, it is only down about 2.5% from the recent peak on September 19. Despite that, the reading is the SPX is in the area of price exhaustion which provides an opportunity for a rebound. Coinciding with the perfected TD Buy Setup @8, last Friday’s low was made at the 50 day moving average.
The one outlier is the Nasdaq ETF (QQQ). Currently, it has an active TD Buy Setup @6. Even if follows through lower to complete a TD Buy Setup @9, it is near the TDST Support level at 195.03 to have any significance.
If weakness continues to prevail during Monday’s session, both the SPX and IWM will record a TD Buy Setup @9 suggesting a price rebound is near. If the market is to campaign for a fresh all time high, this is the area. Otherwise, any rebound is just a reset before leading lower again.