Tension: Price Versus Time

With another up trending day on Wednesday, the cash S&P500 has shown that it has the strength for this rally to last until at least the equinox.
The current Level 1 Price Pulse (Y) up from the September 2 low has so far refused to yield; indicating that the next pullback will hold above 991.97. The higher level patterns continue to insist that the rally from March must continue until at least September 21. That has been my working premise for quite some time now -- the rally lasts until at LEAST the September 21 date. The tension between reaching that *time* at a new rally high and the DeMark weekly and daily “sell” signals is growing.

Besides the price pulses, another indicator of short-term strength is the fact that the weekly TD Supply Line has now been broken and qualified (see last weekly chart posting). Additionally, we are still operating on the daily chart with minimum price projections of 1042.89 (from TD Lines) and 1044.44 (RSI); implying a new high and still further to go to the upside. So far we have reached 1036.34, just 3.13 points from a new high.

As I mentioned, attempting to “cap” the rally are the current TD Weekly Combo and TD Daily Sequential signals. The risk levels as well as the Weekly cancellation level are what we have to watch. The first, associated with the daily sequential, is at 1049.93. The point where the weekly TD Combo signal is cancelled is 1063.01. As we approach these levels it will be essential to watch the technical interplay between price, the RSI and the Composite Index. Most trading days are interesting … the next seven will be very much so.