Has the Re-test Failed?

After running up to the 94.1% retracement level on Wednesday the cash S&P500 then reversed to ultimately close lower. This “outside” day price action has still not resolved the Price Pulse issue but has set us up to test the 878.94 level. A very strong downtrending day today would point to a L1 Z pulse being underway.

The TD Supply line sits at 928.78 today while the TD Demand line is at 884.07. Please note that if hit the Demand line would not be qualified today, which means that there is usually not much immediate follow through on such a break.

The experimental trade position remains short from 897.34; stop & reverse at 930.17.