![]() When a TD Sell Setup is recorded, it is typically a natural pause point for a pullback, and the stock comes to a decision point to either pullback, reverse or continue higher after the pullback. If short term trading, these pullbacks on the daily chart can be profitable. Since I do a fair amount of daytrading and swing trading, my methodology is utilizing multiple timeframes and coming up with common denominators. The key takeaway is to make DeMark indicators your own. What I write is basically providing some thoughts on my top narratives for the following week. The tools mentioned in the book are universal, but the use of it depends on the trader’s risk personality. The Jason Perl book, DeMark Indicators, is an outstanding guide for a comprehensive look at Tom’s work. There are many ways you can interpret and use it. Like any indicator, TD Sequential is a trading tool. Some traders incorporate TD Aggressive and TD Combo, which are related to TD Sequential, and also serves as potential price exhaustion points. The two main components of TD Sequential are TD Setup which is the momentum component and TD Countdown, which is the trend component. As I continue to experiment with it, it also became a risk management tool through TDST Support and Resistance levels. Calculating the ebb and flow of patterns is made easier with TD Sequential. It enabled me to place structure to chart patterns. I eventually learned that TD Sequential is much more than 9 and 13’s. His primary indictor, TD Sequential, is mainly known as a timing indicator. Tom DeMark disclosed his indicators in a book as he believed others were infringing on his work. Some personal quick thoughts on TD Sequential and the use of it. With the TNX closing at 41.73 or 4.17%, the daily chart shows it is in price exhaustion territory with a TD Buy Setup If higher rates still reflect lower stock prices, tracking the TNX makes sense as ‘bear steepening’ is the current buzzword. The CBOE 10 year Treasury Index (TNX) chart represents the 10 year US Treasuries. The Nasdaq 100 index (NDX) has already recorded a TD Sell Setup Similar to the SPX, expectations are for the NDX to test the lower end of the newly formed uptrend towards the TDST Support at 14715.36. Otherwise, considering the pre-holiday low volume pushing the market higher, the reasonable path is to at least test the 50 day MA once again. It is currently at price exhaustion levels with an active TD Sell Setup To continue to power higher above the TD Resistance level at 4576.73 and new highs without any type of pullback would require a fundamental shift in sentiment. The daily SPX is now facing its first big test. ![]() The S&P 500 (SPX) caught a bid after taking out the 50 day moving average. If the SPX does end up above 4276.56 to start the week, consider it a signal the market selloff has been put on hold. We will continue this assumption until the middle of next week. However, every counter move higher last week was quickly rejected. Thursday, October 26th, is the ideal day when the SPX can record a TD Buy Setup and the TNX can record a TD Buy Setup This will also imply a 10 year above 5% which should draw the SPX lower.įor the start of next week, the two hour SPX chart is representative of all the short term charts, which are at price exhaustion levels. Currently the SPX has an active TD Buy Setup and a TD Buy Countdown For a price target, the TD Trend Factor at 4109.04 will become more relevant if the SPX trades in proximity of 4109.04 with a TD Buy Setup or count.Ĭombined with the 10 year Treasuries as represented with the CBOE 10 year Treasury Index (TNX) which has an active TD Buy Setup expect the SPX to bottom in the latter part of the week. Once the SPX establishes a close below the lower low level at 4216.45, the DeMark count gets more involved. The S&P 500 (SPX) is experiencing quite a selloff and looks set to continue.
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