I continue to believe that we are experiencing a correction in a bull market. Detailed below is the ideal setup that would compel me to deploy all sidelined cash (up to my portfolio equity allocation) into this market. Given the short-term weakness exhibited last week, I wouldn't be surprised if the market retested the low near 1867. If this retest occurs this week, I will be looking for a positive RSI divergence to form with a weekly close above 1921.
My short-term indicator based on equity and total put/call ratios isn't yet giving me actionable signals. If and when it does (combined with confirmation from money flow indicators I use), I'll post an update.
Follow signals from the Prophet4Traders system to identify turning points in the U.S. stock market
The purpose of this site is to share results of a trading system that I use for identifying both long-term and short-term trading opportunities. I take the time to do this because of my passion for investing and helping others succeed. The system helped me avoid the "Crash of 2007/2008" and every major correction since then. The cornerstone of my trading system are analyses of market liquidity to gauge longer-term market sentiment and equity and index options (put/call ratios) to identify short-term entry and exits.
This site is for information purposes only. Past performance of the trading system is not a guarantee of its future success. Please consider consulting a qualified investment adviser before making investment decisions.