The market is still making higher highs, but laboring hard with two hard distribution days the past week. The DeMark TD Sell Setup count for the daily S&P 500 (SPX) has price flipped bearish with a TD Buy Setup @1. TD Sell Countdown recorded a 13 on March 1st and TD Combo Sell recorded a 13 on March 7th. The reactionary thought is the rally has ended. This can be confirmed with a daily close below the two hour TDST Support at 5061.89. The warning signal would be if the SPX closes below the 30/45 minute TDST Support at 5105.73. DeMark indicators aside, there are enough catalysts ahead that can chop the market around and maybe even propel the market high enough to challenge the TD Trend Factor at 5244.63. On the calendar, the potential catalysts are the CPI release on March 12th, Nvidia’s AI event on the March 18th, and the March 20th FOMC meeting. To see 5244.63 or at least the recent high at 5189.26, the mentioned TDST Support levels just needs to hold. While this whole top picking exercise is just splitting hairs, the longer term charts has queued up the sweet spot for price exhaustion. This has signaled the risk is to the downside.
Trade Trekker 