Current SPX Position: Short from 1429.08
Next Action: Stop at 1438.60 (or probably higher at 1446 if it takes a few hours to reach 1439)
System Score: 5=Neutral=Trend Score + Turn Score=9-4
Since the System Score turned neutral, the last trade was stopped out at 4hr support which was near 1417 but moved up to 1429 with the rally as we hoped for to lock in more profits. 19pts in this case. SPX basically closed at our entry point.
If SPX drops....but holds 1410-1415, the Score should turn bullish again and force another long entry at the subsequent 4hr resistance break. However, breaking 1410-1415 should cause the Score to remain neutral-to-bearish for 1-2 days.
If SPX rallies...to 1439+ early Thursday, the Score may still be neutral forcing the current short trade to be stopped out and reversed long. However, if the rally takes a couple hours or more, the Score will turn bearish and force a looser stop for the short trade.
There is a real possibility that the FOMC announcement marked a wave 2/B top, but, even if that's true, max pain and light-volume holiday trading could very well allow for a lot more chop around 1380-1420 into end of year before a move occurs in one direction or the other into the common March turning point. Good luck.
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