Tues 9/25/2012. Daily Update.

(Update Tue 9/25/12 3PM EST)

Current Position: None
Next Action: Long at 1461 (4-hour candle resistance)
Score (0-10): 10+=Bullish=Trend Score + Turn Score=8+3

The System was stopped out of its long for a 15pt loss and is now flat. If bears can break SPX below 1440ish to the 1420s, I think they have a good shot of making the next bounce a lower high and following-thru on the discretionary spending projected top which may have occurred at 1475 (portending an 8-10%+ drop). However, the System awaits an hourly resistance break to go long or further technical damage before getting short. Good luck.

(Update Tue 9/25/12 1:40PM EST)
If you are not already (fully) long with the System, you are being given an extremely low risk, high reward opportunity to do so. One could enter long at 1452-1454 with a stop at 1449.97 for a 2-4pt risk. Risk would come into play if one enters long and SPX sits just above 1450 at the close in which case I'd recommend closing one's position since the low-risk justification for entering the trade would no longer exist. I do think a bounce is coming one way or another, but a break of 1450 would likely give one an opportunity to enter at 1440ish or even 1425ish instead...or of course you can wait for the next System entry point like me. Good luck.
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Current Position: Long from 1465.16
Next Action: Stop at 1449.97
Score (0-10): 10+=Bullish=Trend Score + Turn Score=10+1

Key moment with SPX at 1454. Any bullish triangle should not drop below 1450 and probably not 1452. If SPX were to break 1450, one could possibly argue for a quirky triangle wave B with C=A at 1444 or 1438 depending on how you count it. So, support at 1440ish and 1425ish remains, and I still suspect we will subsequently get a strong bounce given the bullish trend and BOW day. Of course, if 1450 holds into tomorrow morning, SPX will almost certainly make new highs in the next week or so. The System has a stop in place at 1449.97 but I can bump that as high as 1455 hourly support if SPX looks vulnerable into the close, so stay tuned. Good luck.