Current SPX Position: Short at 1689.35 (Short closed 1704-->1699 and long closed 1699-->1689)
Next Action: Stop and go long at 1700.19
System Score: 8=Bullish=Trend Score + Turn Score=10-2
Proposed New Score: 64%=Bullish=Trend Score + Turn Score=48+16
The System made 2 trades today due to 4hr resistance and then 4hr support being broken with the score at neutral. Although the System is currently positioned short, the rally has turned the Score bullish but it is fluctuating around SPX 1690 and the 20dSMA.
Today is one of those days that makes me want to tweak my rules, and it seems like there have been a cluster of such days in the last month as well as in the first month of the System...maybe I should make an adjustment for low-volume less-volatile periods as often occur in mid-to-late summer. Many times, I have contemplated not making 2 trades in the same hourly candle or back-to-back hourly candles as happened today. But, I need to backtest those occurrences (maybe 1 every month or two) for a couple years. And, I have contemplated allowing large gaps at or beyond s/r to not trigger an immediate trade when the Score is neutral since it seems those are more susceptible to retracement and a couple points of flexibility could help, but I know some gaps have run and don't know how the profit would have played out without backtesting.
The fact that Dow made a new low today but SPX didn't likely supports a small SPX rally above 1700 while Dow finishes the C-wave of an ABC up. If so, the System will experience more whipsaw. If not, 1676 is an obvious target and the technicals could setup more bearish once below the 20dSMA. Good fortune.
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