Current SPX Position: Short at 1626.90 (Last long trade stopped out 1624-->1627)
Next Action: Stop and go long at 1635.02
System Score: 4.5=Neutral=Trend Score + Turn Score=10-5.5
Proposed New Score: 50%=Neutral=Trend Score + Turn Score=48+2
The System reversed to a short position today. There could still be more whipsaw, but technicals are setup well for a downtrend to begin today or tomorrow. However, until SPX breaks below the 1590s and changes the trend, every mildly oversold drop should produce a long setup for the System. Good fortune.
Hi S2,
ReplyDeleteWanted to clarify your latest comment.
You mention a downtrend could begin today or tomorrow but unless SPX breaks 1590s it won't be confirmed. However, you also mention that any mildly oversold drop could produce a long entry on your system.
How do you reconcile both ?
Unless we fall directly from current levels to the 1590's, which is quite unlikely, any drop on the way to 1590s happening in several sessions will most certainly produce an oversold condition albeit ST, and will trigger your system to go long. Did I missinterpret something ?
Best,
I think you understood me correctly. What I'm saying is that the System is setup for SPX to fall or consolidate near-term but barely. So, as it falls, it will get more and more bullish for a rally. Yes, that means it is unlikely to go barreling through the 1590s where the trend could turn bearish, but stuff like that does happen occasionally and the System will ride the downtrend until it reverses at 4hr resistance. 1600ish seems like a good target zone for a retest from my experience, but the System doesn't make targets. Hope that helps.
ReplyDelete