SPX Update

As mentioned yesterday, the trendline up since the february low is still in tact and the daily trend models and buy signal remains intact.

When anticipating a correction one must be patient and wait for confirmation.

Currently we have bearish momentum divergences and bearish candle sticks (reversal day yesterday, and an inside day today). I use the SPY and DIA etfs for candlestick analysis as the opening of the ETF's is more indicative of the indices' price action.

However bearish candlesticks and bearish momentum are only relevant if price confirms. Currently not taking a neutral or bearish stance until we see some price breakdown. SPX longs are still a hold but caution is warranted because if price breaks down one will need to act fast. My trigger signal is so far above the signal line that a reasonable amount of profit could be lost waiting for a sell signal to get out. I think a trendline break and a range trading mode on the daily chart will be a good time to exit. Buy back in if trend models turn back up and signal is on a buy. As always you can check the live charts at the link above.