The SPX advanced 5.02 points yesterday to close at 1197.01. TOT daily traders were on the sidelines for the session.
The super long term perspective for the stock market remains bearish, and it’s unlikely anything will change that for several years.
Both the long and short term models remain bullish.
The daily model is slightly bullish today, but without strength yesterday from selected blue chips, especially within the energy complex, momentum would be insufficient to have gotten the market off dead neutral for today. While I’m not a conventional chartist, take a look at a 10 day chart of the Dow Industrials and a 10 day chart of NASDAQ and you wouldn’t even think it’s the same time period. In any event, TOT daily traders are advised to go 200% long at SPX 1198 stop. If you go long, use an 8 point sell stop on the position. If not stopped out, carry the position over the weekend and into Monday.
If the market can break resistance in the 1200-1205 area, we will likely increase the size of the position as the probability of a stronger bullish reading for Monday is high.
Please do not take a larger position than I’ve suggested right now though, as risk of a sharp selloff on any unexpected negative news is quite high.
Have a great weekend, thanks for the opportunity to be of service, and I’ll email you again in 72 hours – or sooner if circumstances warrant.
Turov on Timing is Copyright (c) 2005 by Turov Investment Group Inc. All rights reserved. Turov on Timing is for personal use only. All caveats and advisories that appear in the monthly Turov on Timing apply equally to this email. Re-publication and distribution is strictly prohibited. No part may be reproduced without the permission of the Turov Investment Group Inc.