(Update Fri 10/12/12 3:05AM EST)
Wiggle, wiggle, wiggle, wiggle. SPX is sitting at a key tehnical level at 1425-1430. Previous support from multiple occasions resides there and so does the 50dSMA. Once that level cracks, we should drop to sub-1400 but I'm not sure if that's going to happen now or after OPEX next Friday. The Score remains at 6 but could easily move 2pts in either direction depending on today's close and Monday's open. In other words, the Score won't necessarily turn much if any more bullish if SPX falls and vice versa which is indicative of a decision point rather than an extreme top or bottom. Interesting short-term juncture. FYI..if one exited the long trade at 1431, the current re-entry would be 1438.44 but the System is still precariously long for the time being. Good luck.
(Update Fri 10/12/12 11:05AM EST)
The Score has risen to 6, so I am lowering the stop once again to 1425 and not going short if 1430.64 is broken. SPX is threatening it now. More later...
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Current Position: Long at 1442.53
Next Action: Stop and go short at 1430.63
Score (0-10): 5=Neutral=Trend Score + Turn Score=4+1
With the Score going back to neutral, we cannot give the 4-hour support any flexibility, so the stop has been raised to 1430.63 where the System would also go short. Once again, that would be an uncomfortable position since some positive divergences and 1425-1430 support could turn that trade bad quickly and a C-wave up is still possible. But, the System plays the cards it is dealt. Aside from 1 or 2 brief bursts, SPX has stayed in tight 2-3% ranges for months on end it seems like. Good luck.
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