Update: The System has been stopped out at 1358.66 for a 13pt profit on the short trade...or more if you took 25% profit on the last 2 or 3 spike downs as the System recommends. The System is not bullish or long. It will await the next short trade setup on a break of 4hr support...currently 1343.34 but likely to rise.
Update: Stop has been lowered to 1360.63 and will be lowered to 1358.66 or lower if SPX drops below 1344. This trade has turned out better than I expected but beware a reversal for reasons described below.
Current Position: Short from 1371.38
Next Action: Stop at 1363.38
Score (0-10): 4=Bearish=Trend Score + Turn Score=1+3
The Score has turned less bearish, but it's unlikely to turn neutral-to-bullish anytime soon, because the trend is firmly established down and it wouldn't take that much for indicators to get overbought again from where they are. The last opportunity for a bounce did lead to 3 days of consolidation. I think we are at or near a similar juncture especially with the 3rd BOW day in a week, so SPX is likely to trade sideways-to-up for 2-3 days especially if things get more oversold into OPEX tomorrow. A rally near the 200dSMA at 1382 is very possible. In any case, we play the cards we are dealt and, currently, the System is bearish and likely to stay that way leading to short-only setups. The stop will drop to 1359 or even 1355-1356 if SPX makes a new low tomorrow morning. If stopped out, the System will not go long and it will be looking for a break of 4hr support to re-enter short. Good luck.
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