Fri 12/28/2012. Weekend Update.

Current SPX Position: Short 1401.79
Next Action: Stop and probably go long at 1413.21 depending on technicals at that time
System Score: 5=Neutral=Trend Score + Turn Score=1+4

I was tempted to turn the System off for the last week of the year due to fiscal cliff risk and my vacation time, but sizable market-moving events seem to come up at least a few times a year especially in recent years, so I decided to let things ride through thick and thin and see what happens. I didn't like the long trade at 1419.75 at the end of a quick spike (that was an 18pt loser), and I don't really like the current short trade at 1401.79 because every pronouncement causes whipsaw and futures could easily flip against us by the Monday open. Regardless, the System is highly likely to flip long at the next 4hr resistance break, because the Score is almost certain to be neutral or bearullish even if the 200dSMA is broken at 1390. But, if SPX can't retake 1420, the System is just as likely to go short again at the next failed rally and possibly stay that way for a while. So, stay tuned. I'll try to post again on Sunday night or before the open on Monday once we see the market's reaction to the Sunday Congressional "progress". Good luck.