The ideal peak for the S&P 500 (SPX) stated for January 10, 2020 was initially disqualified by violating the short term TD Risk Levels last Thursday, January 16, and officially disqualified the following trading day on Friday, January 17, 2020 by recording two consecutive closes above the 3307.83 TD Risk Level on the daily chart above. (TD Risk Levels can be used as proxies for stop losses). Nevertheless, due to the unabated rally, the next price exhaustion point comes this Tuesday, January 21 or Wednesday, January 22, when the daily SPX can potentially record a TD Sell Setup @8 or @9.
Furthermore, the weekly SPX’s TD Risk Level at 3282.50 is in jeopardy of being disqualified. Another close above 3282.50 will disqualify the significance of that level. However, a close below 3282.50 can have implications similar to January 2018 when the SPX could not maintain two consecutive closes above 2813.29 TD Risk Level.
The Nasdaq ETF (QQQ) is extraordinary. There has not been a price flip since December 6, 2019. The 222.98 TD Risk level is drawn from the recently recorded TD Sell Countdown @13 and TD Combo Sell @13 on January 13, 2020. It also shows the TD Risk Level potentially being violated as well. The surge is clearly unsustainable and needs a bit of pullback.