SPX Monthly Chart - Jan 2011

     The monthly chart of the cash SP500 completed a TD Buy Setup in February of 2009. The market subsequently rallied. After a TD Sell Setup nearly a year later there was a consolidation phase followed by a resumption of the rally. The most significant item of note now is that TD Combo bar #12 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 this month -February.
     If the March 2009 low started a new TD Wave pattern then we are currently in the third wave of a five wave impulse pattern or wave 'C' of a zigzag.
     Bottom Line: The monthly chart remains in a bullish position.