After another strong rally day and the cash S&P500 is threatening to march higher. Once more we are at a point where we have broken and qualified the TD Supply line (horizontal dashed red line) and now wait confirmation. Arguing against a strong upward thrust is the fact that we recently had a technical “sell” signal (bearish divergence between the RSI and Composite indicators) and that TD Combo hit bar number 13 Friday.Even with the “better than expected” jobs report and subsequent share rally on Friday I still think the chart evidence favors the view that a pullback is forthcoming. In my work definitive proof that the pullback is underway would be provided by a break of 992.49 (last Thursday’s low).
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