Current SPX Position: Short from 1429.08
Next Action: Stop and go long at 1428.06
System Score: 5=Neutral=Trend Score + Turn Score=9-4
The System stop has been lowered as 4hr resistance has fallen. The Score is at neutral now and unlikely to move much above or below that while SPX is at 1400-1430, so the System is likely to trade both ways until there is a breakout in either direction. I suspect SPX will initially bounce from 1405-1415, and then we'll see if the rally fails in the 1420s. Like I said before, factors like max option pain, low-volume holiday trading, round-number attraction, fiscal cliff concerns, lack of most large news items etc are likely to produce a sideways-to-down chop near 1400ish (1380-1420) over the next couple weeks before a larger move ensues into March. But, of course, we'll follow where the System takes us. Good luck.
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