The SPX advanced 5.88 points yesterday to close at 1145.20. TOT daily traders went 200% short at SPX 1142 and covered the position on the close. We are currently flat.
Since initiation of this service on September 30, 1993, our daily trader recommendations have gained 8359.56 cumulative SPX points compared to a gain of 686.27 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.
The long model remains neutral, and the short term model remains bearish.
Volume on the rally yesterday was the lowest of the year, breadth was positive on the NYSE by less than 200 units, and only 1 of the 5 most active NYSE stocks advanced.
The daily model is slightly bearish today, but we will stand aside for the time being. If the SPX rallies about a half dozen points or so, I will consider recommending going short again, but for the time being, stand aside.
There is a very good chance that the market is in a topping mode that may take a week or two to complete, but the odds favor SPX 1100 much sooner than SPX 1200.
Thanks for the opportunity to be of service, and I’ll email you again in 24 hours – or sooner if circumstances warrant.
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