The cash S&P500 broke out of its recent range yesterday with a downtrending price bar. As long as the break below the TD Demand Line (thin solid green line on today’s chart) is confirmed today we have these initial price targets: the intermediate Gann moving average (blue line) at about 915; Demand Line and TD Propulsion targets at 903 and the weekly Intermediate moving average and a Fibonacci level near 888.
One of the reasons to watch carefully for Demand Line break confirmation before getting too bearish was laid out by a commenter yesterday. The TD 7-11 (or TD LV in DeMark’s New Market Timing Techniques book) indicator warns that we may bounce back today. Additionally, note that we made low yesterday by closing the gap on the daily cash chart between May 29 and June 1. Oftentimes these gaps can provide support.
Both the cash S&P500 and the CRB Index made major lows about the same time in March so I am monitoring the commodities closely. Yesterday we had the bearish price flip on that index to confirm technical “sell” signals and a TD Combo “sell". I am now leaning towards the view that equities have started their most significant pullback (even if we bounce higher today) since the rally off the March 6 low began. The “proof”, so to speak, will be a weekly technical sell signal. We have to wait until Friday for that, when we may also get a perfected TD Sell Setup on the weekly CRB chart.
No comments:
Post a Comment