We ended last week with an up trending price bar on the daily chart of the cash S&P500 and remain on bar #12 in the TD Sequential Countdown process. Now that we’ve met the price target of 1068.03 associated with the TD Supply Line break, the only overhead resistance left is the Fibonacci retracement line at 1074.One item I continue to watch here with interest is the Dollar Index. It has been moving inverse to the s&p’s since March. The Dollar index also remains on a Sequential bar #12 countdown; but, unlike the equity market it is for a buy signal. For today, to make their respective bar #13, the dollar index must close below 75.51 but not trade below 74.9. For the cash S&P500 we need to trade above 1073.19 and close above 1066.65.
Bottom Line: I have been short-term neutral since October 9th and remain that way now while waiting to see if we get a sequential signal here. I will not consider going to a long-term bearish stance unless 1019.95 is violated.
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