Mon 10/8/2012. Daily Update.

(Update Mon 10/8/12 5:30PM EST)
Current Position: Short from 1459.50
Next Action: Stop and go long at 1460.94
Score (0-10): 5=Neutral=Trend Score + Turn Score=9-4

The Score is still neutral but will become slightly bullish if SPX trades above 1461 tomorrow morning and will become slightly bearish if SPX trades below 1451 tomorrow morning. If SPX gets stuck between 1451 and 1461 tomorrow, I'm not sure what the technicals will do. SPX traded up near the System short entry point 3 times today, but the trade ended the day in a modestly positive position with a near break-even stop. Stay posted. Good luck.

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Current Position: Short from 1459.50
Next Action: Stop at 1470.97
Score (0-10): 5=Neutral=Trend Score + Turn Score=10-5

Sorry for the late notice, but my weekend was crazy busy and I'm transitioning jobs, and I warned on Friday that the System was likely to go short at the next 4-hour candle support break if SPX could not break to new highs. The last trade only netted 7pts but at least it was positive. Any time the System transitions from bullish to bearish or vice versa especially in a neutral state like now, there is high risk of whipsaw. This short trade is probably riskier than the next one will be, but it has higher potential reward too. If SPX gets below 1450 without a rapid reversal, the technicals will turn more bearish and a larger downtrend is likely to the 1420s or even 1370s as I originally proposed based on previous discretionary spending tops and extreme Turn Scores. Good luck.