Tues 3/19/2013. Daily Update.

Current SPX Position: None
Next Action: Go long at 1561.54
System Score: 10+=Bullish=Trend Score + Turn Score=10+0.5
Proposed New Score: 72%=Bullish=Trend Score + Turn Score=48+24

The Proposed New Score appears to lag behind the current System Score as it rises to 10. However, the actual range for the current Score is -6 to +16 with 0-10 being the range most of the time and 4-6 near turns, while the Proposed New Score is percentage-based 0-100. The current Score of 10.5 is at the 75th percentile of its range which is not far above the Proposed New Score of 72%. Like I said when I first raised this proposal, there is typically only a few percent difference between the 2 scores. At a theoretical maximum, the difference can be +/-14%, but it would be extremely rare for the new trend indicator and the new turn indicator to completely diverge from all the old indicators. Logic and limited backtesting suggest the Proposed New Score will give approximately 4% more sensitivity at major turns. Once I see if the Proposed New Score handles the next downtrend successfully relative to the current Score, I will make it permanent.

The market is probably on hold thru tomorrow's Fed announcement. The Score is bullish and on the verge of becoming even more so, so the odds favor either a rally to new highs or a large retracement if a further dip occurs. 1540-1545 and 1525-1530 are still short-term support areas I am watching. The System will likely go long once 4hr resistance is broken (currently 1562 but will drop if SPX makes lower hourly closes). Good luck

P.S. SPX quickly made a new low to the 1540-1545 support area after my post. 4hr resistance drops to 1557.25. The System will go long 1 penny above. However, since I see no posd on hourly RSI and MACD, I'd say the drop could ultimately extend to the next support area at 1525-1530 and then we'll see what conditions are like there. With SPX below 1543, the Score has fallen to 9.5 and the proposed new score is only 60 but they are not likely to turn neutral today or even tomorrow.