Monday 10 January 2011

SPX Monthly Chart

     The monthly chart of the cash SP500 shows that a TD Buy Setup completed in February of 2009. The subsequent rally saw a consolidation following the TD Sell Setup nearly a year later. The most significant item of note currently is that TD Combo bar #11 was made last month. Like Sequential, a sell signal is possible after reaching a count of 13 - which could come as early as the end of February.
     With the medium price pulse in an uptrend (see last post) there is no immediate reason to be concerned about the rally (and any long positions) from the 2009 low. We will look to see whether there are any warning signs on the intermediate price pulse chart tomorrow.

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