The SPX advanced 2.89 points Friday to close at 1205.82. TOT daily traders were on the sidelines for the session.
The super long term perspective for the stock market remains bearish.
The long term model remain bullish, and the short term model remains neutral.
The S&P traded around the 1200 area on Friday, never going much above or below it. It’s somewhat curious that all ten of the NYSE most active stocks advanced Friday, yet TRIN was only moderately positive at .76, the Dow Industrials declined, none of the Dow 30 advanced by a point or more while five declined by at least a point, volume contracted by almost 20% from Thursday, and there was no expansion in the new highs list. Strangely curious.
The directional component of the daily model is slightly bullish today, and the path of least resistance remains up. However, the market still has no legs, and any bit of surprising bad news could send it cascading lower. The only slightly bullish reading of the directional component and the rather high reading of the risk component argue in favor of remaining on the sidelines – boringly but safely awaiting a better trading opportunity.
Since initiation of this service on September 30, 1993, our daily trader recommendations have gained 6516.91 cumulative SPX points compared to a gain of 746.89 points in the index itself over the same period.
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