The bulls have fought back after Monday’s sharp decline but the price bar formed on the cash S&P500 Tuesday is still classified as downtrending. We can also note that the April 17 high is now both a Level 1 Price Reaction Point and a fractal high. The decline since that point is a Level 1 “Price Pulse (PP) Theory” Beta pulse.
We touched (826.83) our first downside target (825-827) yesterday and then rallied higher. The slight break of the TD Trend Factor level was not qualified and so we must still use this level as our current downside target. In the short term the bulls are trying to get back to “kiss the underside” of the Beta – Z trendline that was broken the other day. That level is at 858.82 today. Whether we can rally this high or not I remain tilted to the bearish side here. Price Pulse Theory will not even consider the bullish view unless we can go back and make a new high.
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