(Update Fri 9/21/12 4:50PM EST)
It's a bit agonizing for me to take System trades near pivot extremes (1450/1465) when I suspect the market is going to go sideways. But, the System has fared far better than me over time and it is difficult to time breakouts, so I take solace in the likelihood that my agony will turn to pleasure once my account gradually builds through the congestion periods and trends. Meanwhile, the Trend Score increased to 1 and the Score is 10+. If SPX drops down to test the 1440 support area, the Trend Score should finally drop below 10 to maybe 6 or 8, but the Turn Score would almost certainly rise to 3-5, so a drop to 1440ish would still produce a very bullish System state. That means the System is not likely to go bearish unless 1440 becomes resistance or SPX gets overbought again at new highs. Given my general bearish bias since the start of 2007, I have no doubts I'd frequently be getting killed in short positions over the last 2 months if I weren't relying on the System. Good luck and great weekend!
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Current Position: Long from 1465.16
Next Action: Stop at 1454.98
Score (0-10): 10=Bullish=Trend Score + Turn Score=10-0
The System is long again. The Dow is testing new 5-year highs while SPX is still a half-percent short. Although a triangle or flat is possible to chop us up for a few more days, the technical bias is up. I was expecting a large move one way or another next week with OPEX out of the way, but I just remembered about quarterly OPEX on September 28th. We'll just follow the techncials where they lead us. Good luck.
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