S&P 500 Futures
The SPX Pit traded futures contract is printed bar 8 of a daily TD Buy Setup yesterday. If today it closes below 2040.60, it will complete the DeMark buy setup.
While it’s always a better sign of strength if a Buy Setup cancels, its completion in this case does not suggest that the daily trend has changed from bullish to bearish because the price remains above the TDST Level Down at 2008.50.
Crude Oil Futures
This contrasts with the bearish message of the daily DeMark Buy Setup that is completing today on Crude Oil futures (CL_F). That count is completing well below the active TDST Level Up line at $50.37. (Note that once the Buy Setup completes the new TDST Level Up for $CL_F will be reset at $46.65.)  This past July, I shared several reasons why Crude Oil was headed lower.
For those learning DeMark analysis, always keep in mind at what levels Setups complete: a Sell Setup completing above TDST Level Down is further evidence of strength in the bullish direction, even though a 1-4 bar pause/retracement may follow.
Conversely, a Buy Setup completing below the TDST Level Up is a further sign of weakness even though there may be a 1-4 bars relief rally. A Buy Setup completing above the TDST Level Down (as is the current case on the SP_F), suggests that the pullback in the upward trend (the correction) should be over and vice-versa for a TD Sell Setup completing below TDST Level Up.
Good luck and good trading to you!
Twitter: Â @FZucchi
Author does not have a position in the mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
