SPX Daily Chart - 3 Feb 11

     In yesterday's note it was pointed out that the daily chart should be monitored for wave 5 completion. At this point that would take a move below the 1271.26 level. Perhaps not surprisingly this is very close to the other level of importance derived from the weekly chart work yesterday - 1271.5.
     The daily price pulse chart would signal an early warning of a possible trend reversal should we break the current beta -x trendline shown on the chart above.
     Bottom line: As of now the daily chart, like the weekly and monthly, remains in a bullish position.

Weekly Chart Update - 2 Feb 11

     Yesterday we saw that the monthly chart remains in a bullish position. On the weekly chart (shown above) we are waiting for a weekly price flip (close less than the close 4 weeks ago) to trigger the combo 13 bar. I have also superimposed the TD Wave count from the daily chart as well as the Level 1 (orange) and Level 2 (blue) TD Lines. Note that the level 1 line is tracking the short (red) moving average closely.
     Finally, I have also drawn in the price level (horizontal dashed purple line) where we would need to close under (1271.5) to get the weekly price flip. Interesting that it coincides with the location of the Level 1 Demand Line.
     Bottom Line: This chart needs to be monitored for a price flip and TD Demand Line break. The daily chart should be monitored for a potential TD Wave 5 completion. Until, at a minimum, any of those things occur the weekly chart, like the monthly, remains in a bullish position.

SPX Monthly Chart - Jan 2011

     The monthly chart of the cash SP500 completed a TD Buy Setup in February of 2009. The market subsequently rallied. After a TD Sell Setup nearly a year later there was a consolidation phase followed by a resumption of the rally. The most significant item of note now is that TD Combo bar #12 was made last month. Like Sequential, a sell signal is possible after reaching a count of 13 - which could come as early as the end of this month -February.
     If the March 2009 low started a new TD Wave pattern then we are currently in the third wave of a five wave impulse pattern or wave 'C' of a zigzag.
     Bottom Line: The monthly chart remains in a bullish position.

SPX Daily Chart - 31 Jan 11