Currently Neutral

The cash S&P500 formed another downtrending price bar on Wednesday but this time with a higher close. Indeed, it looks like the bulls will not give up without a fight. We remain on a “Price Pulse (PP) Theory” sell signal but before I can get too bearish I need to see a break in the price pulse trend, which right now requires a break below 814.53.

So far the pullback from Monday’s high has been very shallow and didn’t even reach the Qualified Level 2 TD (Tom DeMark) Demand Line target of 834.97 (we got down to 835.58). Support remains in the 826-829 level. This support is provided by both Fibonacci confluence and two moving averages. As noted yesterday, since the Z pulse is fundamentally the weakest in the entire cycle we should watch it for hints about overall market health. So far the market continues to look more bullish than bearish here.

Time-wise, the odds are high that if a short-term low is still in the making it will come today. We can’t say the low is in yet; particularly since a TD (Tom DeMark) Anti-Differential down arrow has now appeared at Monday’s high.

The current Price Pulse based on Level 2 PRP’s is in a Delta pulse (green labels) from the March 30 low and gives permission to re-enter longs on a move above 864.31.

To wrap up: currently neutral. Bullish above 864.31; bearish below 814.53.