The SPX declined 4.17 points Friday to close at 1210.85. TOT daily traders were 300% short for the session, and have held the position over the weekend and into today.
The super long term perspective for the stock market remains bearish.
The long term model remain bullish, and the short term model remains neutral.
For each of the past seven sessions, the S&P futures have transversed the entire 1212 to 1217 level sometime during the trading session. To transverse a 5 point level for seven straight sessions is a pretty clear indication that the current market has no strong sense of direction.
The daily model is bearish today. TOT daily traders come into today’s session 300% short. Maintain the protective stop at SPX 1220 for the time being. If the SPX declines to 1205, lower the stop to 1215, and for each additional 5 point decline, lower the stop by an equivalent 5 points. If not stopped out, carry your position overnight and into tomorrow. Please note though, that if the market is able to close to the plus side today, there’s an excellent chance that the daily model will NOT be bearish again tomorrow.
Since initiation of this service on September 30, 1993, our daily trader recommendations have gained 6424.26 cumulative SPX points compared to a gain of 751.92 points in the index itself over the same period.
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