The cash S&P500 broke out of its recent consolidation on Friday. We opened above the TD Demand Line and never looked back. Confirmation (a move above Friday’s high) projects to 1038.05. Combined with a bullish looking weekly chart (yesterday’s post) it looks like the rally is back on! Right? Well there is some concern over the next few days …The currently upward moving Level 1 (smallest scale) price pulse (alpha) is due to peak and will be followed by a downward moving beta pulse this week. With Beta comes the danger of a sharp decline that quickly puts the market back below 978. I think the odds of this are small but worth noting (a good reason for tight trailing stops). However; even such a decline would be followed by a move to new highs as the overall rally continues (in time) to at least the Equinox.
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