The daily S&P 500 (SPX) recorded a TD Sell Setup @9 near the vicinity of the TD Trend Factor at 4183.10. While the market is free to selloff, the underpinnings of the market are solid, and that suggests the overall rally has more to go. To suggest otherwise, we can view price action in the few days to see which path the SPX wants to go. To gauge a deeper pullback, the former TDST Resistance level at 4110.41 has some use. If on Monday, February 6th, the SPX closes above the previous day close at 4136.48, that’s the first indication the market is reloading for more upside and possibly the current TD Sell Setup @9 +1 never price flips bearish. However, if the close on Monday is below 4136.48, and below 4110.41, that’s an indication of a deeper pullback. If the SPX is below 4136.48, but above 4110.41, then on Tuesday, February 7th, the SPX needs to close below Monday’s close to stay on a path for a deeper retracement. Rinse and repeat, but if there is positive close above 4110.41 before closing above 4110.41, more upside is being signaled.
If 4110.41 is breached, the pullback is buyable if the short term timeframes record price exhaustion levels above the TDST Support at 4037.20. Below that, the daily TDST Support at 3949.06 comes into the picture, but falling below 4037.20 signals a more overall bearish view.
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Long-term downtrendline is arpimd 3950. Market could pull back and stay to the right-side of the old downtrend. |
