The cash S&P500 completed a TD Combo countdown last
Friday (shown in the chart) while the Sequential is on bar 11. We are now quite
close to triggering this potential
“sell” signal at this time frame. With Combo or Sequential I prefer the
conservative approach by demanding a price flip. That would occur today only
with a close below 1685.73. If we continue higher my Fibonacci work shows a
target area at the 1726 to 1743 level with the TD Trend Factor target at 1738.
As shown in previous posts, the potential bearish divergence between the RSI and Composite
Indicator continues. Today I want to show yet another developing bearish
divergence – this time between price and the Derivative Oscillator (top pane). Note
the bullish divergence that accompanied the price low in late June and compare
that to the bearish divergence developing now. This can’t be good for the
longevity of this rally.
As for the price pulses and wave count there are no
changes since my last post on the daily chart. And so we have the monthly,
weekly and daily charts all on the verge of declaring an upside exhaustion
event. Caution!
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