Again the focus is on the potential for price exhaustion; especially now that a TD Sequential
countdown bar #13 has printed. I use this event in a conservative fashion –
waiting for a price flip to trigger a “sell” signal. In this case a close next
week below 1680.19 will do the trick. To be balanced we should also point out
the associated “stop loss” level of 1737.48.
The technicals associated with this chart continue to be
supportive of potential price
exhaustion. Note that even though price is now at its highest closing level,
both the RSI (top pane) and Composite Index (not shown) are not confirming. Of
course, a continued rally may work off these potential bearish divergences.
The Elliott Wave count shown is not the TD D-Wave count
presented in the recent series of postings. The count shown is based heavily on
my price pulse work and you can see two levels of pulses. The bottom line is
that we are near the end of a trending impulse pattern from November 2012. Thus
we again see potential price
exhaustion. Recall that the D-Wave is also indicating pattern completion.
Lastly the Beta-X trendline is shown in blue. This is
used as an aggressive “sell” trigger in the price pulse investing scheme. Of
equal import is the fact that the rally from the June 2013 low is a Y-pulse
which must be followed by a Z-pulse. Oftentimes the most punishing declines are
associated with Z pulses.
With potential exhaustion now showing up at the daily,
weekly and monthly levels one should be ready to move to the sidelines nimbly
if the sell triggers start to fire.
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