The S&P 500 Index closed higher by just short of one percent, trading within the range of the prior session’s reversal range that highlighted upside buying exhaustion. Momentum indicators continue to show signs of rolling over with MACD remaining on a sell signal that was triggered on Thursday. The momentum indicator has been diverging from the direction of price for over a month, indicating waning buying demand around these heights. Support remains firm below at the rising 20-day moving average, a check-back of which is likely as the market enters its period of normal volatility through the months ahead. The summer rally period through the month of July has certainly been impressive, but it is time to step back, at least temporarily, to allow the price action to rest and reset.
equityclock.com
By many standards, the S&P 500 (SPX) bearish reversal on Thursday, July 27, should have kicked off a corrective pattern lower, but closed the week high enough to keep the daily TD Sequential active with a TD Sell Setup @4. The timeframes longer than the daily SPX are at price exhaustion levels, which indicate the bearish element still exists. A lower low print below the July 27th intraday low at 4528.56 should signal it is ready to tilt below the short term TDST Support cluster at 4505.90. If the July 27th intraday high is first breached higher at 4607.07, and the TD Sell Setup is still active, the TD Trend Factor at 4655.95 looms as a target. Note a TD Sell Setup @9 could record on Friday, July 4th, which is the unemployment suite of data. Also, a TD Sell Setup @9 at/near the 4655.95 level meets the DeMark criteria for a high probability reversal.
tradetrekker.wordpress.com |
