The SPX declined 35 points Friday to close at 1298.35. TOT daily traders came into the session 300% short and have held the position overnight and into today.
The bond model remains neutral. Quite surprisingly, the gold model has done a 180 degree turn, and is now rated bearish. Repeating, the gold model is now bearish.
The super long term perspective for the stock market remains bearish.
The long-term model (a six month perspective) remains neutral, and the short term model (a one month perspective) remains bearish.
The daily model is bearish today. TOT daily traders come into today’s session 300% short. Lower your stop to SPX 1335. If not stopped out, carry your position overnight and into tomorrow.
Despite the sharp selloff, none of the really important components of the daily model is registering oversold readings. So while we certainly could have a 10 or 20 point dead cat bounce, the odds are overwhelmingly high that the selling is not over yet.
Since initiation of this service on September 30, 1993, our daily trader recommendations have gained 6340.74 cumulative SPX points, compared to a gain of 839.42 points in the index itself over the same period.
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