A Complete 9-13-9

After ten consecutive sessions with higher highs the cash S&P500 paused on Friday by forming an inside day price bar. It was enough, however, to complete a TD Sequential Reinforcement (otherwise known as a 9-13-9 “sell” pattern). It also brought a readjustment to the TD Supply Line.

First off … my price pulse analysis still requires a higher high. At this point any move above 1074.77 will do. Please note that a higher high is necessary but not sufficient for a reverse of the bull trend.

Secondly, any sell off here should be viewed as a pullback/correction. A few levels to watch as things develop: The “risk” level associated with the 9-13-9 pattern is at 1084.05. Both TD Lines may be qualified at this point. The Supply line sits at 1073.63 and the Demand Line at 1061.89.

Bottom Line: Still bullish until we see a price above 1074.77 recorded. Without such a move any decline here should be considered a pullback within the on-going bull run. It would take a move below the September 2 low to change my mind.

P.S. on the World Gold Index. On the daily chart we have perfected a 9 bar TD Sell Setup and completed a TD Sequential “sell” countdown. The calculated risk level of 1029.6 has not been breached. The TD Demand line will not be qualified if broken today but a close below 1008.1 will “flip” the price trend to down. In addition, the RSI has made bearish divergence with the Composite Index and the TD REI POQ triggered a “sell” when we went below 1007.2. Therefore, it still looks to me like this index wants to make a double top with the February high. However; being a longer-term trader/investor the bullishness on the monthly chart will not let me take any bearish. If I was long I would be thinking about my stops (close below 1008.1) very carefully.