SPX Levels For Wednesday
Relative to potentially bearish DeMark trend exhaustion signals, the most important S&P 500 level is 1,344. All things being equal, we would prefer to see the S&P 500 remain below 1,343. Similar, but less important levels include 1,326 and 1,313. Several conditions have to be met for a “violation” - it is more than just a close above. For example, the 1,313 level has not been negated yet (three more things need to happen).
Markets can peak on good news - remember when the “breakthrough” euro summit sparked a big rally? It marked an intermediate top. Therefore, an Apple and Fed-induced spike that remains below 1,344, then reverses intraday would be best case scenario for trend exhaustion. It is important to keep in mind if the signals are “wrong”, they tend to be “really wrong”, meaning stocks could march higher in a rapid manner. Thus, the need for an open mind and flexibility.
