Current SPX Position: None
Next Action: Go long at 1514.12
System Score: 10=Bullish=Trend Score + Turn Score=4+6
The Score has not budged. It's unlikely to turn neutral until late Thursday at a minimum. We did get a divergence between SPX and Dow today to get them back in sync but in the opposite way I proposed. So, now, SPX and Dow both look corrective rather than both looking impulsive. A 3-3-3-3-3 LDT is possible but unlikely. That does not mean SPX is out of the woods but it adds weight to my discretionary consumer spending analysis which calls for a likely new SPX high in Mar/Apr after a brief scare and it makes the whole 1-2 scenario less likely. I still think SPX will experience downside pressure into early March, but it's likelier to follow my less bearish intermediate-term scenario which calls for an overlapping drop to 1425-1475 followed by a new high. This is a snap judgment and it is not confirmed until Dow 13942+ and SPX 1499/1506+. Although SPX made a lower low today, it did not close below yesterday's close on an hourly basis, so the long entry point remains at 1514 rather than being lowered to 1498. My hope is that SPX stalls below 1514 or maybe consolidates at 1510-1520 for a day so that we don't get caught in whipsaw prior to the next likely downleg below 1475. Good luck.
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