Current Position: Long at 1442.53
Next Action: Stop at 1427.23
Score (0-10): 8=Bullish=Trend Score + Turn Score=4+4
At this point, the Score has turned bullish enough that even a drop below 1425 may not trigger a short trade, so the System will stop out at 4-hour candle support and not go short. I am clueless as to what will happen next. There was another big Buy On Weakness (BOW) day on Friday for SPY, so the S&P has fluctuated between SOS and BOW signals for weeks now which is quite unusual. It could indicate distribution but I can't say I backtested that. The latest BOW combined with somewhat oversold technical indicators like TRIN should statistically allow for a 1-2%+ bounce, but my discretionary spending analysis (not the well publicized retail sales numbers) along with various fundamentals suggest there are strong headwinds for SPX with QE3 as the primary support. So, we'll continue to play the cards we are dealt within System rules. Good luck.
No comments:
Post a Comment