The cash S&P500 resumed its rally without a price flip, moving above the 1692.51 level which gives us a new TD Setup which recycles our TD Combo and Sequential countdowns. Thursday represented Combo bar 10 and Sequential bar 6 based on the new active TD Setup (shown by the number 9 symbol on the price chart).
The DeMark recycle makes sense in a wave frame of reference also - it appears that we are now towards the end of wave 3 in a suspected five wave impulse sequence from the June 24th low. Note that Wave 3 is now equal in length to a 100% projection of Wave 1.
On the RSI chart (top pane) the indicator has poked to a new high for the move and is now above the 63-67 zone which often signals that a market is transitioning into a bear phase. At the same time the RSI is rising, note that the Composite Index (middle pane) continues to fall. In my ideal scenario going forward we get a fourth wave pullback and then the Composite forms bearish divergence with the RSI in the fifth wave as we reach a DeMark exhaustion signal. But for now, the daily chart must be deemed bullish.
A review of the weekly chart and Elliott wave musings this weekend. Cheers!
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