After completing a TD Combo countdown last Friday (shown in the chart), the cash S&P500 has produced: bearish divergence between the RSI and Composite Indicator as well as between the Derivative Oscillator and price, a break in the low level Beta-X trendline, and now a price “flip” (close less than the close 4 bars prior). The daily chart is now bearish. The only good news for the bulls was that we held 1681.86 yesterday. This allows for the possibility that another push higher is still possible before the trending impulse pattern from the June 24th low is complete.
The risk, or stop loss, level on the TD Combo signal is 1718.66. I would not be surprised to see that challenged over the next week or so even if we are at an upward exhaustion point.
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