The SPX advanced 6.62 points yesterday to close at 1138.49. TOT daily traders were on the sidelines for the session after covering our 400% short position profitably on the opening.
The super long term perspective for the stock market remains bearish.
The long term model remains neutral, and the short term model remains bearish.
The market gave back about half its intraday gains yesterday in what must be considered a disappointment for the bulls, considering how strong the sentiment numbers were. I had said on yesterday’s hotline, “I expect the market to meander slightly higher, in the absence of any significant news, but no significant rally is likely without important news.” Since the sentiment numbers easily could have qualified as important news, the minor advance is actually rather bearish.
The daily model is neutral today, reflecting primarily the bullishness of impending month end seasonality with the sorry action from the market yesterday. There are numerous other factors playing a part, of course, but overall, I continue to believe that the most likely direction is for the market to meander slightly higher but without any particular fireworks. We will stand aside, awaiting a fatter pitch.
Since initiation of this service on September 30, 1993, our daily trader recommendations have gained 6894.14 cumulative SPX points compared to a gain of 679.56 points in the index itself over the same period.
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