The cash SP500 did not confirm its close above the short (red) moving average last Thursday and sold off after reaching the TD Supply line. The downturn in price on Friday put a negative reversal in place in the Composite Index (middle pane) with a calculated minimum target of 1314.52. That target was reached yesterday as we closed below the long (green) moving average but managed to avoid breaking TDST Support at 1312.62. Note that yesterday's drop below the Demand Line can be considered a false break.
For today I will be watching to see; 1) If the close below the long average is confirmed, 2) whether we continue to hold TDST support, 3) whether the RSI (top pane) can hold the bull market support level, and 4) whether a bullish divergence forms between the RSI and Composite. These four markers will tell us a lot about the short term direction of this market.
Bottom Line: The allocation mix meter remains at +100%. I am still expecting to see new highs before the April low is violated.
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