The cash S&P500 formed an “uptrending” price bar on Friday while closing slightly lower. Once again resistance was provided by the short moving average (red line) and the 50% Fib retracement level.
The slightly higher high recorded was enough to confirm the break of the supply line on Thursday and projects to 937.17. TD Resistance is now at 946.21 and the TD Trend Factor target at 944.86. These three numbers give a target zone of 937 – 946.
I think that we need to move above 927.09 today to “activate” the target zone mentioned above. If we can’t break 927.09 I think we will go back down to perfect the pending TD Buy Setup. To do that requires a move below 888.86.
Bottom Line: I am bearish on the equities due to the recent sell signal on the weekly chart and lack of perfection on the daily chart’s DeMark Buy Setup. However I don’t think we will fall hard here … we may end up moving sideways for 2-3 weeks.
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