The cash S&P500 formed an inside price bar on Thursday and continued to hold the 930 area but remains in a precarious position (as far as the bulls are concerned). The low at 923.85 on Wednesday is most likely a Level 1 PRP and the end of the Beta Pulse. A failure to move above 949.38 before breaking 923.85 would add to the bearishness of the technicals described yesterday. Today’s close (weekly chart) continues to be quite important.
A new TD Demand Line is in play. A move below 941.98 would be a qualified break of this line and project to a price of 907.38. The overhead TD Supply Line would not be qualified today.
It is interesting that the Demand Line is so close to where we closed yesterday; almost like it lined up that way to immediately come into play when the all important jobs report is released this morning. Bottom Line: No change in my thinking. We are nearing the end of the rally from March. A failure to close higher this week would lead to a multi-week corrective pullback. A higher close this week points to the rally extending towards the 970 area where we have to watch for the start of a much deeper multi-week corrective pullback.
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