Next Action: Stop and go long at 1689.51 (will be
System Score: 7=Bullish=Trend Score + Turn Score=4+3
Proposed New Score: 56%=Neutral=Trend Score + Turn Score=16+40
The System was stopped out for a 20pt loss after SPX closed 1pt above support yesterday, and the SYstem is now short. The tight month-long consolidation has been painful for the System but trendless churning periods are part of the game. The Score is now slightly bearish again but 4hr resistance remains high near 1690. So, the System is unlikely to get long unless SPX closes an hour below 1661 and then rallies above
To me, the whole drop from 1697 looks like 3 waves that could use one more drop to complete.
1710-->1685=1/A, 1685-->1700-->1683-->1697=2/B flat, 1697-->1659(or 1647-1653)?=3/C
If true, the next retracement up, whether a wave 4 or wave X, can be pretty small perhaps targeting 1665-1675 before dropping to the 1630s or 1640s. TRIN was very low the last couple days and there has been very little buy-on-weakness support which favors more downside as if the month-long consolidation breakdown and overbought indicators didn't already do so. Good fortune.
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