Level 2 Price Pulses

Although not as strong, the market (cash S&P500) made another up trending price bar on the daily chart. Price has now confirmed the break above the risk (stop loss) level associated with the TD 9-13-9 signal of September 18. In retrospect we can now say that that signal led to the pullback into the October 2 low. As it stands we are now on day 10 of both the next TD Combo and Sequential. It can also be stated that yesterday continues the Y pulse on the Level 1 price chart presented yesterday.

Yesterday I asked if the Level 1 chart formation “sell” signal (the Beta - X trend line which will be at 1079.17 today) should be used to actually close longs or go short if that trend line was broken. I said Not necessarily. It depends on the higher level pulses. Well, the Level 2 chart is presented today and is bullish until and if its trend line is broken. That line is currently at 1032.14. And so, the two charts taken together remain in bullish mode. The Level 3 chart will be shown tomorrow and will make clear while I do not feel like chasing the bull here.

As far as the Elliott count goes, this chart shows the first two legs complete and that we are now in the late stages of completing wave C of an A-B-C Zigzag.