Weekly Chart

With yesterday’s up trending day the market has still not flashed a conservative entry signal but is still below the stop loss level (daily chart). The weekly chart (shown), meanwhile, is not supporting a short entry on the daily. Unless we close below 1126.48 today the weekly chart will make combo bar #12 this week. In a nutshell, this means that a short entry would be risky right now and ideally should be deferred at least one more week. I like to see the chart of one higher time frame supporting the next lower chart. Does this mean that the market can’t go down here? No. It just means that the higher level trend does not support the idea of taking action right now. It is purely a matter of risk.
Question to ponder: This week looks like it will also become setup bar #9. This raises the question: Which will be the active setup? The new 9 bar series from mid-November or the currently active series from mid-July (where the current TDST Support line is)? Answer next posting.