Current SPX Position: Long from 1462.98
Next Action: Stop at 1452.98 and go short at that level until late afternoon (could rise to 1458.09 if an hour closes above 1463.59)
System Score: 5=Neutral=Trend Score + Turn Score=10-5
The last short trade was stopped out for a 6pt loss, and the System is now long from 1463. The System Score remains neutral. It will likely turn bullish around 3-4PM today. So, up until late afternoon, the System would go short if SPX drops below 1453 or if SPX rallies above 1464 (hourly close) and then falls back below 1458. Otherwise, the System will stay long and possibly loosen its stop near end of day as the Score turns bullish.
Regardless of how you count it, the wedge-like structures in SPX since mid-2010 and late-2011 continue. The bull and bear phases keep getting smaller. If that were to continue, SPX should not exceed the 1540s before pulling back 50-100pts. The musical chairs are disappearing one by one, and ultimately we're going to be left without a chair beneath us when the music stops and we try to sit down with the odds increasingly working against us. I suspect we'll get the typical EDT conclusion but we don't know if it will truncate now, reach 1475+ or even the 1540s+. Be prepared. Good luck.
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