SPX Weekly Chart - 23 Jan 11

     The cash SP500 is in an Intermediate degree Y pulse from the brief consolidation of late November. A weekly closing price below the intermediate beta-x trendline (1284.08 this week) would warn of a retracement towards the medium term beta-z trendline which currently sits at about 1090.
     As for the corresponding Weekly DeMark Chart ... We have been discussing the risk level associated with the Combo 13 bar over the last couple of weeks. That level is shown on the chart as a cyan horizontal line which sits at 1273.72. My personal preference is to require a weekly low to print above this point before ruling out the validity of the Combo signal. Since this hasn't happened the chance for a weekly sell signal still exists. A close this Friday below 1257.64 would produce both a price flip and trendline break.
     Bottom line: While we discuss what it would take to turn the weekly chart negative it is imperative to keep in mind that actual Price action on a weekly basis remains in a bullish position.