SPX Daily Chart - 22 Feb 2011

     On the daily chart (shown above) we have just qualified a break of the TD Demand Line (upsloping dashed purple line) while also making a price flip. Is the daily chart now negative? Yesterday I stated that any break of 1321.87 would turn the chart bearish. With that level exceeded and the low of the day (1312.33) breaking below the daily price pulse beta - z trendline (upsloping blue line at 1312.36), the chart is indeed now officially bearish.
     Also of note is the low price of February 2 (1311.74) shown on the chart as a short horizontal blue line. We fell to just above that level, which would also confirm the price pulse trend as downward on the weekly chart. That chart won't be classifed as bearish without a price flip.
     Bottom Line: Now that the daily chart is in a bearish mode we can start to watch downside objective levels to see whether there is a reaction or not. The first is the wave 2/4 trendline (in orange), the second the TDST Support line in dashed green, the third the TD Trend Factor target in dark purple and finally the 23.6% Fib retracement of the rally from the July low. I have numbered these as 1-4 on the chart.