Current Position: Long at 1418
Next Action: Stop and go short at 1423.53
Score (0-10): 5=Neutral=Trend Score + Turn Score=3+2
The Score is on the verge of going bearish unless SPX can sustain 1429+. If SPX gaps far below 1423, the System would only go half-short and then wait for a 30%+ retracement to go fully short. In that case, the stop would be set at 1430. I mentioned a couple days ago that the technical setup made it likely the System would go short on the next pullback unless SPX could sustain 1440+. That still seems true, because even though the Trend Score could turn more bullish if SPX rallies to 1430-1445, the Turn Score would likely counteract it by turning very bearish under that situation because the sideways-to-up grind the last 4 days already has hourly technicals approaching overbought. If SPX continues rallying, the 4-candle hourly support should rise and mark the System's next short entry.
My educated guess is that SPX is merely finishing wave 4 of A of an ABC rally from 1403 completing on or a couple days after the US elections, but there is a chance that a shorter ABC is already done at 1428 as Tony Caldaro says. The former scenario could give us some whipsaw losses for a short position whereas the latter would be an immediate winner. Either way, I do believe the next 2-3%+ trade profit is on the short side due to the System setup, but there may be 10-20 points of upside in the interim. We will play the cards we are dealt. Good luck.
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