The market is exhibiting strength ahead of the FOMC meeting and on an intra-day basis, it's penetrated the trailing ATR3 stop at 1970. However, on a pure technical basis, there's clear resistance in the 1990 region. Given that I went to 50% cash at 2058, I'm willing to be a bit more patient to see how the market reacts when it revisits 1990.
With respect to my macro indicator, I still see no reason to believe that we are entering a bear market. Therefore, my approach to the market is still to to buy on any significant pullbacks or on a clear breakout above 1990 with confirmation by other short-term technical indicators. My ideal entry-point would be a retest of 1867, but given a positive macro condition, it may not be wise to be too selective.
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.
