And the Beat Goes On .....

The cash S&P500 continued to grind higher on Thursday. It appears that the Level 1 Y pulse completed at Wednesday’s high. The brief consolidation from that point until just after the open yesterday was the entire Z pulse. A new cycle has begun with alpha and has reinforced the bullish nature of the recent daily chart. However, with yesterday’s high (and close) at 1044.14 we have now essentially fulfilled the pending minimum price projections of 1042.89 (from TD Lines) and 1044.44 (RSI). What now?

As mentioned yesterday, the bull/bear fight is now best reflected (technically) by the current TD Weekly Combo and TD Daily Sequential “sell” signals. The risk levels associated with these signals; as well as the Weekly cancellation level, are what we have to watch. It will be bullish to break these levels, bearish to fail.

The nearest level (associated with the daily sequential) is now within striking distance at 1049.93. For the sequential signal to be aborted we need to break through that level in a “qualified” and confirmed manner. However, even without a break, “time” is working against the bears. As pointed out in the comments section to yesterday’s post, if there is going to be a reaction to TD Sequential it usually occurs within 12 price bars. Today is bar #12.

Meanwhile, the point where the weekly TD Combo signal is cancelled is at 1063.01. A break above this level could prolong the rally for quite some time. As we approach these levels it will also be important to watch the RSI and the Composite Index. These indicators will be silent until we get our next down close (on both the daily and weekly charts).

Bottom Line: Still bullish until after September 21 (Autumnal Equinox) at which time I will re-evaluate. Watching closely to see whether 1063.01 can be broken.

P.S. on the World Gold Index. Although we have now printed a 9 bar TD Sell Setup on the daily chart that count has not been perfected. The tricky part is that if you break much above Tuesday’s high to perfect the count the current Sequential countdown will be canceled! See last weekend’s gold post for more. As a swing/longer-term investor I still have no incentive to be short this market here.