Please read my previous post before you read this. Read this May 4 post, because reading this will provide a better context for you to understand the current post. In those posts, I have outlined roughly that a break below SPX 1590 would put this market on an intermediate sell signal. A break below 22.75$ on GE would do the same as well.
MHCAX is one of the indicators I follow to see where the market structure is. I have an intermediate moving average scaled. Right now, this indicator is in an intermediate sell signal. After 2009, the only intermediate signal was in the summer of 2011. If you look beyond 2009 in the past, there are few times when this indicator whipsawed the hell out of followers. If you follow the markets ardently, you will realize that there is no holy grail. You have a set of indicators and watchlists to follow your game.
GE is one of my indicator. I outlined previously that 22.75$ is my line of difference between bull and bear. Right now, we are (almost) there. Not quite. I expect some bounce here and then go down, no guarantees. We could go down from here as well. Either way, we stay short of SPX below 1590.
Market update
ST - Bearish
IT - Bearish
LT - Bullish
