InvestorsHub Logo
Followers 1
Posts 157
Boards Moderated 1
Alias Born 11/19/2011

Re: None

Thursday, 02/16/2012 10:34:09 PM

Thursday, February 16, 2012 10:34:09 PM

Post# of 138
S&P 500 Faces Big Test Below 1,368
To put today’s action into some context, the comments below were posted on Wednesday:

One more push toward 14.91 [in XLF] would fit well into an intermediate-term topping process; the same can be said for an S&P 500 move toward 1,363.

Given the extended nature of the markets and current DeMark counts, the odds of a reversal remain elevated as long as the S&P 500 fails to close above 1,364.01, based on the 9-13 Sequential count. DeMark indicators are proprietary tools developed by Tom DeMark of Market Studies, LLC. The daily Combo count still allows for three closes above 1,352. The Combo count in the S&P 500 E-Mini futures also allows for two more closes greater than 1,349.

The Combo count on the daily chart of the S&P 500 moved one step closer to an exhaustion signal after today’s close. It could reach exhaustion in as little as two trading days. The range of possible S&P 500 resistance comes in between 1,358 and 1,368. Several markets have similar counts aligning with a few more days of strength/consolidation.

Is it possible stocks will blow through the DeMark exhaustion signals while sprinting higher? Absolutely, it is possible, but regardless it is prudent to see how it plays out since we are only talking about a few points on the S&P 500.

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.