The SPX advanced 6.34 points yesterday to close at 1121.28. TOT daily traders were on the sidelines for the session as our recommended sell stop level was never reached.
Since initiation of this service on September 30, 1993, our daily trader recommendations have gained 8291.63 cumulative SPX points compared to a gain of 662.35 points in the index itself over the same period.
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 term and short term models remain bearish.
The daily model is going into its “Hmmm; what’s happening? mode,” as it has simply been wrong too much recently. With that neutral reading, we will stand aside today.
Six consecutive advancing sessions is an extremely rare occurrence during May, and coming with both the short and long term models bearish, my best educated guess is that it is a trap. But trap or not, the bulls are rampaging, and it’s wise to get out of the corral.
Enjoy the holiday, thanks for the opportunity to be of service, and I’ll email you again in 96 hours – or sooner if circumstances warrant.
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