Although we closed back within the range of the past week the cash S&P500 did spike to a new high during the day and formed an uptrending price bar. The tug of war between the bulls and bears continues to be well depicted by the TD Supply and Demand Lines (the red and green dashed lines on today’s chart). The Supply line was broken yesterday but that event might not be confirmed today. The most immediate way for non-confirmation is for today’s opening price to be less than 950.59. The Demand line is now at 929.50.
As posted last weekend, the final say as to the longevity of this rally is the weekly chart, which was only showing *potential* bearish divergence on the technical indicators as of last Friday. Until there is an actual signal the trend is up. If the week had ended yesterday there still would be no signal. Let’s see what today brings.
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. We have had a TD Combo "sell" (now awaiting a bearish flip) on that index and the TD Sequential is on day 11 (of 13) towards a "sell". I suspect that the CRB and equities will reverse together.
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