This chart is now bearish. After recording a TD Sequential countdown bar #13 on August 2, the cash S&P500 had bearish divergence between price and the RSI (shown in the last weekly chart posting). With the stage set, we had a price flip to trigger a “sell” signal this week. The associated “stop loss” (or risk) level is 1737.48 (horizontal cyan line).
I believe we have now completed an Alpha pulse (at the blue color level). On this chart, an even more bearish development would be the confirmation that the August 2 high also marked the green level Y pulse (and hence wave 5 in the trending impulse pattern from the November 2012 low). Currently it would take a move below the June 2013 low to get that confirmation. An “early warning” signal for this event would be a close below the Beta-X trendline shown in blue.
Finally, note that the June 2013 low must still be broken in order to show the TD D-Wave Triple Three count (presented in the recent series of wave postings) as complete. Please note that the wave count shown on the chart is not that D-Wave count but instead one based heavily on my price pulse work. I use the D-Wave count in a corroborating role.
With both the daily chart and weekly charts bearish, one should entertain a sharply reduced exposure to equities.
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