Sentiment is a little too bullish so don't be too bullish.
|TREND||MOMENTUM||EMOTION||COMMENT - Sample for using the trend table.|
|SPY SETUP||ENTRY DATE||INSTRUCTION||STOP LOSS||Mechanic trading signals for reference only.
Back tested since 2002.
|ST Model||11/17 L||*Adjust Stop Loss||*11/19 Low||
|NYMO Sell||*Sell short if Open > Close tomorrow||
INTERMEDIATE-TERM: EXPECT CONSOLIDATION THEN PULLBACK
The pullback today may mean nothing and because tomorrow is Friday and OE so probably we won’t see any follow-through. However from the sentiment survey and the Rydex Fund traders’ actions, the retailers are a little too bullish, so don’t get too bullish here especially if the market rebound huge tomorrow. Overall, I still maintain the call for “consolidation then pullback”.
Rydex Fund traders buying bullish fund to bearish fund ratio.
Pay attention to the following charts tomorrow:
1.1.0 Nasdaq Composite (Daily), the bull’s hope is SOX rises sharply starting from tomorrow otherwise it looks almost a sure thing that a negative divergence exists between COMPQ and SOX. This usually means an important top.
2.8.0 SPX:CPCE, breakout trend line, if held tomorrow, then at least we’re at a short-term top.
6.4.0 SPX and NYMO Divergence Watch, another top signal. Besides, NYMO Sell setup will be confirmed if Open > Close tomorrow. This setup has a 65% winning rate and 5.2 gain/loss ratio, so it’s a fairly decent setup.
SHORT-TERM: NO UPDATE
INTERESTING CHARTS: NONE