The daily chart is extremely interesting and subtle right now as we’ve moved sideways over the past few sessions just under the May high.
If the cash S&P500 closes below 1680.19 today (Thursday) then a price flip will be recorded that triggers the TD Sequential “sell” signal that printed bar 13 on July 8th. Instead, if the market resumes the rally without a price flip, any move above the 1692.51 level will give us a new TD Setup and recycle our sequential countdown. As reader Wallfly noted in a comment yesterday, a TD Combo bar 13 could print today giving us another item to watch for.
On the RSI chart (top pane) we have had a bearish divergence between the indicator and price. Please note that this divergence is occurring in the 63-67 zone which often signals that a market is transitioning into a bear phase. The Composite Index (middle pane) has now fallen enough where a turn up here *may* lead to divergence with the RSI.
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