Mon 8/27/2012. Daily Update.

The System is bullish and long from 1405 on Friday with stop at 1395.61. If SPX closes above 1411.29 at 10AM or beyond, hourly support will rise to 1408.73 and the stop would be placed 0.5% below that. The opening gap up may have completed a double ZZ from 1398 or possibly an expanding triangle. The implications are conflicting, so it's best to stick with the System and raise the stop if the rally continues. Good luck.