Good morning gentlemen: todays DMS is indicated neutral as measured by DTE- and calculated by DSI- Todays DMP=1.40/1.53- *pretty decent #’s suggesting a robust algorithmic backdrop (3:1 buy/sells), thus limiting our downside expectations-
We mentioned over the last 2 days that the SPX/MKT was in position from a S/T Timing perspective and based upon location of price relative to TIME for perhaps a brief disruption lasting no more than 1-3 days and limited to the lower end of the range (2700-2750)-
So the question is- Is this the beginning of something bigger, or just yet another pullback to FV- within a rotational MKT structure? We think the latter as we have suggested for several days/weeks…
SPX S1=2705-07-Would mitigate S/T short exposure here.
SPX S2=2690-94- Would engage SPX/MKT on long side here.
Traders/PM’s are advised to use the pullback today/tmrw to lower short exposure and re- engage the SPX/MKT on the long side as outlined above. The SPX/MKT’s trend structure Is still technically valid and considered intact within the “Major” daily cycle and likely to maintain its technical composure over the next few days/week.
Chief Technical Strategist / DCH-DTA