Inside Day

The market paused yesterday in the form of an “inside” day. This is where the price bar on the chart contains a high less than the previous session and a low greater than the previous session. For today, any close below 1012.73 will turn the swing chart (shown by the solid orange line) down for the first time since the July 8 low. This has no other significance than to emphasize the importance of this correction in relation to past action. Another qualitative measure is TD D-Wave. Measuring from the July 8 low, the August 7 high would be labeled as Wave 1 or A . I prefer the “A” label since I believe a three wave swing is underway. Per the way I use D-Wave, the current “B” wave correction will be over when we get a close greater than all previous 20 closes.

The inside day yesterday has allowed the Demand Line to adjust. Pending a break and confirmation of this new line I will keep immediate price targets for the decline at 969 and then 961.