Update Wed 3/6/2013 10:15AM EST: The Score has gone from 5.5 to 4.5 and might possibly drop to 4 if SPX doesn't fall much in the next couple hours. The next action to short 4hr support stands true.
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Current SPX Position: None
Next Action: Short next 4hr support break (currently 1537.78) with stop at 4hr resistance
System Score: 5.5=Neutral=Trend Score + Turn Score=10-4.5
Proposed New Score: 56=Bullish?=Trend Score + Turn Score=48+8
System indicators are near or even above their most bullish levels in 2 months. We have several recent SOS days. Dow made an all-time high. SPX has not yet. The economy and global markets appear to be downtrending. March is commonly a turn month. SPX has rallied almost non-stop 60pts in 6 days. The Score may turn more bearish by late Wednesday morning especially if SPX rallies. The setup is there for a bearish turn in the coming hours, but, now that SPX has separated from its key moving averages, the immediate threat looks less ominous (maybe a backtest of 1520-1530).
I was wrong about the downtrend continuing into early March, but the System warned us that 1512-1525 was a decision zone and had us primarily on the long side. SPX gave a head-fake down and then blasted through 1525. Predictions are fun. Profits are better. The Friday March 8th jobs report may still prove to be a turning point but we'll see how SPX behaves into that date. Good luck.
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