Tues 1/8/2013. Daily Update.

Current SPX Position: Short from 1456.61
Next Action: Stop and go long at 1462.98
System Score: 5=Neutral=Trend Score + Turn Score=10-5

Since the Score is neutral, the System will trade both ways at 4hr s/r. I believe SPX is either finishing EW 4-5 waves or A-Bs. Both of them favor choppy action for a few days, and the System is not likely to rack up big losses or gains. I think you have to suspect another high is coming until SPX gets back below the 1445ish breakout level and takes out some key moving averages in the 1430s. One interesting note: starting in 2000, the month of March or April has marked the start of the year's largest bounce or fall. April has been a key top the last 3 years favoring 1500-1600 by April, but March was the common bottom or top before that leaving us guessing. The primary useful nugget I can mine from that is... whatever happens between now and March is likely to be reversed strongly starting in late March or April. If you think about it, we're only a little over 100pts below an all-time SPX high, and a 3-3-5 flat (with the 5-down starting this year) or a 1970s style consolidation both allow for further highs to 1500-1600 probably converting any final non-believers that are open to conversion while still portending a nasty 2013-2014 along with various business and market cycles. They also allow for the next bear market at any moment, so it is recommended to protect long-side profits frequently during this topping process. Good luck.
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Current SPX Position: None
Next Action: Short at 1456.61 (rising 4hr support) or Long at 1466.48
System Score: 5=Neutral=Trend Score + Turn Score=10-5

After looking at the closing data when I got home, the Score is actually 5, not 4. That makes the System neutral, not bearish. The System will still go short at 1456.61, but will also go long at 1466.48 or both if there is whipsaw. Once one of those levels is tripped, keep in mind the other level will change with 4hr s/r. None of my action levels are static for long but 1457/1466 is the System bear/bull line for now. Good luck.