SPX Daily Chart - 15 Feb 2011

     The cash SP500 traced out a downtrending day yesterday. Can we claim a top has been made? Not at all. To be so bold we would need confirmation in at least one way; preferably more. Certainly a price flip would be nice. For today that would require a close less than 1321.87. A qualified break of the level 2 TD Demand Line would also be nice. However, that can't happen today since yesterday was a down close.
     Actually I would prefer to see a reversal in my price pulse work. At the lowest level of the pulse (daily chart) we would need to break the beta - z trendline which stands at about the 1305 level today. The weekly pulse actually has an "easier" reversal point right now - the February 10 low of 1311.74. It gets confusing because the weekly price pulse chart can break this level on any day of the current week, not just Friday. These two price pulse reversal lines are drawn in blue on today's chart.
     Bottom Line: In my work I want to see a price flip and a price pulse reversal before calling the daily chart bearish.