The cash S&P500 found support at the confluence of the short (red) and intermediate (blue) moving averages yesterday and then moved higher to form another “uptrending” price bar.
As noted previously, the break of the supply line projects to 937.17, TD Resistance is at 946.21 and the TD Trend Factor target at 944.86. These three numbers give a target zone of 937 – 946. Now that we have moved above 927.09 I think we are headed towards that target zone.
Please note that the equities continue to act like a commodity (tracking the CRB index). Both bottomed early last week and are now retracing their declines from the June 11 high. If the CRB can close above 260.21 (254.31 yesterday) it will complete a TD Sequential Sell Countdown (It already completed a TD Combo Sell and had a technical sell signal with the June 11 high). Since the weekly CRB is not on a technical sell signal yet (although we have had a perfected weekly TD Sell Setup) a weekly CRB close above 262.25 may be needed before this bounce has run its course.
Let’s see how the market acts on this last day of the quarter.
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