(Update Thu 9/6/12 2PM EST)
The stop has been raised to 1410 which is essentially break-even and 0.5% below hourly support and at the 20dSMA. If SPX closes any upcoming hour beyond 1430.76, the stop will likely be raised to 1427+. If SPX holds up at 1422+ and then gets some decent news, I'd expect another surge to my 1440-1450 target area. There is a good chance S2 will go from bullish to neutral on Friday or Monday as each indicator gets overbought and setting us up for a possible short trade on an hourly support break. Until then, let it ride. Good luck.
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Futures indicate that SPX will gap slightly over our 1409 entry point, so the System will enter long hopefully in the 1410-1412 range with stop below 4-hour candle support (1401) at 1396.55. After a few hours, the stop will likely be tightened and I am expecting the Turn Score to actually become bearish over the next day or two so SPX will be vulnerable to a strong selloff if it can't hold gains above the 20dSMA at 1408ish. I still expect 1440-1450 to be tested, but there are a lot of events over the next week to provide stumbling blocks. Good luck.
P.S. The System is long from 1412. I'll probably raise the stop to 1401 shortly and I'll post again tomorrow or if the market approaches our stop.
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