Tue 8/7/12. Daily Updates.

Date-Time	Tue 8/7/12 1:50PM EST
Active SPX Trade	None.
System Score (S2)	6 = Trend Score + Turn Score = 10 - 4 = bullish
Trade Trigger (T2)	A short setup today is now possible.
Commentary	Well, the Turn Indicators have moved up noticeably today to the point that SPX is on the verge of an extreme Turn Score of -5 possibly by 2PM. That would make S2=5=Trend Score + Turn Score=10-5 which is neutral. The System allows for long or short trades when S2=5=neutral but recommends only a half-size position. If SPX closes above 1406.26 at 2PM, then the System will definitely enter short at 1401.50 with a stop 0.5% above today's high. Otherwise, it might still enter short at 1393.81 depending on what the turn indicators do between now and then. Until this setup occurs, the bias is long. Good luck.

Date-Time	Tue 8/7/12 10:40AM EST
Active SPX Trade	None.
System Score (S2)	6 = Trend Score + Turn Score = 10 - 4 = bullish
Trade Trigger (T2)	None. The next trade is likely to be long but we need a support break first.
Commentary	System hourly support is currently at SPX 1393.82 and rising. The Turn Score is still not extreme enough to overcome the fully aligned bullish technicals, so the bias is long until technical damage is done. Consumer discretionary spending continues to deteriorate. USD has not made a new low today despite SPX making a new high but the numerous existing divergences can persist and price is king. There is thing I forgot to mention about USD yesterday. The 3-month cycle I've mentioned previously is due for a low any day. The recent cycle lows have occurred on 8/6/2010, 11/4/2012, 2/3/2011, 5/4/2011, 7/28/2011, 10/28/2011, 2/10/2012, 5/2/2012 and ??8/2/2012?? +/-. The USD 3-month cycle is already longer than average but will not reach previous extremes until next week. Regardless, the cycle could end at any moment, and as long as it holds the $81-82 area as expected, it will likely retest $84 putting pressure on SPX. Good luck.