Current SPX Position: Short at 1526.49
Next Action: Stop and go long at1525.55
System Score: 6=Bullish=Trend Score + Turn Score=8-2
The System reversed short at 1526 after profiting 8pts on the last long trade, and SPX fell rapidly from there. However, the bullish trend was not reversed yet, so that combined with a few quickly oversold indicators brought the Score back to slightly bullish. Regardless, the current trade is short and, if SPX can turn 1510 into resistance, it may stay that way. If SPX catches its footing in the morning, our stop level at 1526 may get approached, but I suspect the trend is in the process of turning downward for 2-4 weeks as I've been projecting and there is a good chance 1500ish will be tested before SPX bounces much. I forgot about the Monday holiday, so today was essentially the Turnaround Tuesday I expected. The TRIN spike we got today usually leads to bottoms within a couple hours or days, but, given the intermediate-term overbought indicators with negd and being only hours removed from the 1531 top, I think it is an initiation spike. April 9th and September 25th are 2 similar examples of spikes after long uptrends, and they resulted in 1-2% more downside followed by a large retracement and then much more damage. That would fit well with the story I've been telling. But it also means we might get long again this week before going short again once indicators reset. Good luck.
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