Wednesday, May 8, 2013

Wed 5/8/2013. Daily Update.

Current SPX Position: Long at 1623.75
Next Action: Stop and go short at 1626.45
System Score: 4.5=Neutral=Trend Score + Turn Score=10-5.5
Proposed New Score: 50%=Neutral=Trend Score + Turn Score=48+2

The Score is almost bearish now. The stop-and-go-short level has been raised to 1626.45. It's quite extraordinary how many SOS (SellOnStrength) days there have been near 1600-1630 in recent weeks. That is one reason why I do not expect an explosion higher and a 2% grind is about as far as I've seen the market move higher on multiple signals. We're pretty much there. It is always followed by a correction back to where the signals started at a minimum and that's 1600ish. But, this is a HUGE cluster of signals and this is an extraordinary market. We should know next week if this is a franken-market or a bullish-but-normally-behaving market. Either way, the System is long and just waiting for a 4hr support break to try another short position. Good fortune.

2 comments:

  1. trying to understand your terminology. Are you looking for a 4 hour candle to close below 1626.45 to go short?

    ReplyDelete
  2. The System Review tab explains how to find 4hr support and resistance. 4hr support moved up to 1626.91 today.

    ReplyDelete