In investing I have taught myself not to speculate about the future but stick to the known facts from the charts; and the last few postings on the daily chart show why! So far there has been no temporary bottom and yesterday was yet another downtrending day. The facts proclaim that this chart is getting weaker.
In fact, we now have a qualified, confirmed break of the Beta-X trendline which is a price pulse sell signal. We’ve also had a qualified break and CLOSE below TDST support (see chart of the daily cash SP500 above) That is, we can say that the cash SP500 has is on the verge of breaking support! As Tom DeMark says in New Market Timing Techniques this break can only be invalidated by “(1) a failure to follow through in the direction of the TDST breakout by recording … a lower low … than the TDST breakout day’s … low within the next three trading days or (2) … an upside opening gap the day following a downside TDST breakout that is not filled that same trading day.” We'll watch to see if this occurs.
IF the market is to hold here we should note that the TD Trend Factor target from the May high was just hit (solid purple line on the chart at 1563.31). But with that said the bottom line is that the daily chart is oh so close to being outright bearish like the weekly.
Remember that we have a new monthly and quarterly chart this weekend!
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