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Current SPX Position: Long from 1550.90
Next Action: Stop at
System Score: 10+=Bullish=Trend Score + Turn Score=10+0.5
Proposed New Score: 74%=Bullish=Trend Score + Turn Score=44+30
The stop has been raised to 4hr support at 1573. Given the bullish Score, the System allows me to use a lower stop below 4hr support, but the next meaningful pivot at 1561/1563 would give up too much profit especially after a good run that is technically setting up to fail. I don't know if we have a 5-wave or 3-wave rally from SPX 1536, but Dow definitely has non-impulsive overlap. So, given the hourly technicals and patterns plus the bigger picture, I feel pretty comfortable that SPX is about to begin another downtrend. However, I think the odds are at least 50/50 that it will retest the 1550s-1560s and then retest the 1580s before finishing. That would setup the System for another short position, because, as things stand, the System will not go short until 1560ish is broken and then we see a failed rally OR until SPX rallies back near the 1597 high. In the mean time, the System may actually get long again if stopped out. Good fortune.
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