View About To Be Put To The Test

As I pen this the S&P500 futures are rocketing upward to the tune of 18.8 points. An equivalent move at the cash market open (added to Friday’s closing price) would put us at just below the August high. In other words, today’s action will be quite telling on whether my current narrative is worth its salt. Let’s see what happens.

Price Pulse. It is now clear that the August 28th low marked the end of Beta pulses on both the intermediate and medium-term levels. Particularly with the strong futures this morning it is instructive to recall that the Price Pulse theory indicated that the market had once again turned bullish when the previous Alpha pulse high (1669.51) was broken on September 9th. At this point it would take a move below the August 28th low (1627.47) to turn it bearish.

3) TD Sell Set-Up. The cash S&P500 is on bar 9. The associated risk level is at 1697.98 (horizontal dashed cyan line).

Bottom line: While the daily chart remains bearish under my technical parameters, Price Pulse Theory indicates that the rally has further upside potential in both price and time. However; my position had been that we would fail to make new highs and then reverse and go on to make even lower lows. That interpretation is about to be put to the test.