The SPX advanced 4.74 points yesterday to close at 1170.29. TOT daily traders were on the sidelines for the session.
The super long term perspective for the stock market remains bearish.
Both the long and short term models have downticked from bullish to neutral as of last night’s close. Repeating, both the long and short term models are now neutral.
The daily model is bearish today. TOT daily traders should go 300% short at SPX 1170 stop or SPX 1179 limit, whichever comes first. Use a 10 point protective buy stop on your position. If you go short and the market moves lower from our short level, lower your stop by 10 points for each 10 points that the market declines. If still short on the close, carry your position overnight and into tomorrow.
I do not expect any major meltdown here, and the market still has some decent upside potential ahead of it after an expected bout of profit taking. But the potential exists for 30 to 40 points to the downside, and with a 10 point stop in place, the risk to opportunity looks good from the short side.
Thanks for calling, and I’ll speak with you again in 24 hours.