SPX Daily Chart - 7 March 2011

     Prices have been contracting in "triangle like" fashion over the past two weeks, and have been bouncing between the short (red) and medium (blue) moving averages as well. It certainly feels as if the market is at a decision point: Either break up or break down.
     A break down would be indicated on any move below 1302.58 and target objective #2 at TDST support (1286.12). A break out to the upside would be signaled by a move through the downsloping red trendline and most likely be followed by a move to new highs. Recall that the daily chart's risk level is at 1345.5 (dashed horizontal blue line) and is associated with the last TD Sell Setup recorded on February 11. A qualified break of that level would turn the daily chart back to being bullish.
     If I had to guess which way we break it would be up, simply because of the recent bullish divergence between the RSI and Composite index since March began as shown on today's chart.
     Bottom Line: All charts bullish except for the daily and so the Timeframe Mix is at +75%. This value ranges from 0 to 100 and gives me a long-term cash allocation view of the equity markets.