Failure to Launch

In retrospect, the failure for the C-pulse to move prices away from the A-pulse peak of 1369 was a good warning sign. Yesterday’s downtrending price bar on the daily chart of the cash S&P500 broke below the February 22 B-pulse low; which was the final blow to the bullish case. It is this sort of price action that makes me glad that my “system” takes the higher time frames into account and has me out of equities.

Where does the Intermediate Price Pulse stand now? It has generated a “short-term” sell signal by falling below the B-pulse low. Tony Plummer states that now we have to be careful in that the subsequent Y-pulse rally may abort the signal by retracing back above the B-pulse low point of 1327.04. However, it should not go above the previous A-pulse high of 1369.23 and then a “longer-term” sell would occur on any move below the X-pulse low (yet to be made). And so the Intermediate price pulse picture is negative.

Tomorrow I will look at the next higher-time frames.