Current SPX Position: Long at 1623.75 (Last short trade stopped out 1617-->1624)
Next Action: Stop and go short at 1622.69
System Score: 5.5=Neutral=Trend Score + Turn Score=10-4.5
Proposed New Score: 54%=Neutral=Trend Score + Turn Score=48+6
A 2-3% correction is a normal part of the market process, and bulls are not in much danger until the 20dSMA is breached. That level is currently 1585 and rising. By the middle of next week, the 20dSMA could easily be at 1595ish. So, a retest of 1585-1595 would likely make the Turn Score bullish while maintaining a fairly neutral Trend Score thus keeping the overall Score bullish. Thus, you should continue to expect a majority of long trades until technical conditions change, and that will likely take a failed rally near or below key moving averages. Keep in mind that moment is probably coming very soon due to my discretionary spending analyses, but the bull market is alive until technically proven otherwise. Good fortune.
No comments:
Post a Comment