Since our last update on the cash S&P500 the Alpha pulse high has been confirmed complete as of the September 19th high. The FoxPulse1 chart has been updated (above) to reflect this.
Although this chart shows only the lowest level price pulses, there are times when signals will cascade upward across time frames. Although each upward pulse (Alpha, Delta, Y) in the series (Alpha-Beta-Delta-X-Y-Z) is making higher highs while the downward pulses (Beta, X, Z) are making higher lows, the “early warning” trendline (in orange) has been broken.
Adding to the concern is the fact that the recent high was accompanied by a technical signal. While the RSI (top pane) made a new high the Composite Index (middle pane) did not. This is bearish divergence. Those with a very low risk tolerance may want to get less bullish here. The line in the sand at both this and the FoxPulse2 level would be a break of the horizontal trend line (in cyan) at 1681.96.
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