Yesterday’s down trending day in the cash S&P500 has brought the index down to the short moving average (solid red line) at 993. This price action has broken and qualified the TD Demand Line (up sloping dashed green line). Confirmation today requires that we close lower than 1004.41 and trade below 992.40. Such confirmation projects 982.87, coincident with a Fibonacci level and should be viewed as the next level of support. Below that lies 961 (Fibonacci and TD Trend Factor).Bottom Line: I think the evidence favors the view that the pullback associated with the Level 3 Beta pulse (see the July 25 post) is underway. I believe that; as a minimum, 961 will be hit; TDST support (875.32) will hold and that the correction will be complete no later than September 2. After that the rally resumes. But first this correction!
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