Wow! Not only did we not confirm the recent break of the TD Demand Line but we are back to threatening new highs. The cash s&p500 clearly found support at the short moving average (solid red line) and then rallied to form an up trending price bar. However, the upward price movement also put the index in a position where it can not qualify the overhead TD Supply Line (dashed, nearly horizontal, red line at about 1018).Bottom Line: The s&p500 has been consolidating for the past eight sessions. Even if we were to post a slightly higher high here (1022-1025 has been a longstanding target) I think the evidence favors the view that the pullback associated with the Level 3 Beta pulse (see the July 25 post) is the next significant event on the immediate horizon. I won’t change this view unless the TD Combo risk level calculated at 1038.92 is broken.
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