Will the Next Push Up Fail?

Yesterday I ended the analysis of the weekly chart by stating “Perhaps the best interpretation is that although one can’t claim the rally from March is ending there is concern of a decent pullback.“ This is reflected in the daily chart with a decline in the cash S&P500 over the last few sessions responding to the perfected TD Setup of 11/17. On Friday we finally got a price “flip” (close less than the close four sessions earlier) to confirm that the pullback is underway.

But how long will it last? Friday’s price bar did hold the short moving average and, if it marked a short-term low, a price pulse high is due over the next two sessions. However, because of the higher level price pulse configurations I believe that this push up will fail and be followed by another decline which completes by December 2. That pullback may be worth buying.

Bottom Line: Still neutral but willing to consider a short-term long position if we rally here and then pullback again. Otherwise, if wrong in my call for a failure, I will also consider buying a breakout above the November 16 high.

*NEW* Technical Analysis of Chart positions for longer-term positions:

Dollar Index: Long from 75.32; stop 74.10; weekly chart on perfected buy setup.

Waiting for initial signals on the following charts: Gold Index,10 yr Bond Yield,
Cash SP500 and the CRB Index.