SPX Daily Chart

     Since the late November low the cash SP500 has seen two completed sell setups on the daily chart. The first resulted in only a minor pullback and the second in a brief consolidation. To start 2011 we had a TD Combo bar 13 print. After such an event the idea is to look for a reaction within 13 bars, and so we have until later next week until that time period is up. Meanwhile, the associated risk level is just shy of 1295.
     Both the weekly and daily charts are on TD Combo bar 13 situations but no action is warranted - yet - since the price pulse on both levels has failed to signal confirmation. We will update the weekly chart on Monday.