Now We Watch The X-Pulse

Yesterday’s price bar on the daily chart of the cash S&P500 was “outside”; making both a lower low and higher high than Monday’s bar. Price continues to hold on to the intermediate (blue) average. I am now calling the C-pulse complete as the high of April 7.

What next? We now watch for the completion of the X-pulse. The price pulse model will issue a “sell” signal if we slip under the 1312.81 level during the current X-pulse decline. We will know the X-pulse is complete if we break 1367.24 to the upside.

In terms of the EWP, I am calling the current decline from the April 7 high as wave 1 of C down. See Monday’s posting for a graphical picture of the wave count.