After a typical pullback following the perfected TD Sell Setup in early June the cash S&P500 has now posted three up trending weeks. As outlined in the post a week ago Saturday, I have an overall bullish view for the next couple of months. As stated yesterday the next upside target is in the 1012-1028 area. The biggest question going into August is whether we will hit this target before an intervening pullback. One item to note on the chart is the TD Combo (dark red) count which has now reached ten. Even with the aggressive version of TD Combo it takes a minimum of thirteen bars to generate a signal. This means that we have a minimum of three weeks to wait before we can get a weekly chart sell signal from this tool.
Even without a TD Sequential or Combo sell signal we can still get a pullback within the ongoing bull run and I expect one in August; particularly since we just hit the monthly chart’s target of 971 within the last two weeks. The August pullback will retrace the rally from the July 8 low. Going into the coming week any such pullback can be identified as underway if the July 29 low of 968.65 is broken. I will watch it closely using the daily chart.
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