Last Friday, there was a small BOW day. In my experience, their effect tends to last about 3 days preventing a strong downtrend and allowing an uptrend. Tuesday fell 1%, Wednesday nearly retraced that fall but produced a very large SOS day. Today, which is not a BOW day thus far, is the day the small BOW day expires and the large SOS day kicks in. This is one of many technical indicators I use and it currently favors downside over upside with a likely cap near all-time highs and a probable retest of Tuesday's lows.
My System did produce a shorting signal at the 4hr-candle break at 2123, reversed that signal on the 4hr candle bounce back above 2108 and got stopped out at 2118 (without reversing short) for 15pt and 10pt gains. The System would currently buy on a rally back above 2126 but would probably not go short until indicators got overbought for a few days again or until SPX dropped below the 20/50dSMAs and then bounced back to retest them.
A cycle indicator I am following produced a short-term sell this week and is likely to produce an intermediate-term sell signal unless the week ends with a rally above 2126. Month-end trading is today and tomorrow. Good fortune.
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