The SPX advanced 1.85 point yesterday to close at 1095.41. TOT daily traders came into the session 200% short and have held the position overnight and into today.
Since initiation of this service on September 30, 1993, our daily trader recommendations have gained 8317.76 cumulative SPX points compared to a gain of 636.48 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.
For the fifth consecutive day, the NYSE advance/decline ratio was positive, and two of those sessions have been overwhelmingly positive. That went a ways towards working off an oversold situation in the advance/decline ratio. Yet the SPX has gone almost nowhere during that time. Markets that work off oversold conditions without advancing are markets that are likely to subsequently decline. Also, for the fifth consecutive day, the high for the day was reached in the early morning, and the market closed below that early morning high. That is a very powerfully bearish sign.
The daily model is again bearish today. TOT daily traders come into today’s session 200% short. Increase your position by attempting to go an additional 100% short at SPX 1094 stop. Use a protective buy stop at SPX 1106 on both the new and the old positions. If not stopped out, carry your position overnight and into tomorrow.
There’s a lot of resistance above current levels, and any rally is likely to be short lived and of small magnitude, in my opinion.
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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