I will automatically switch to an ‘industrial strength’ BOT Short Signal if the sp500 by the 4pm close today manages to close under 1331. The preliminary sell signal would be history and the full one would be activated.
A close under 1331 would activate an MACD histogram sell signal on the daily time frame and possibly start to sculpt the weekly MACD and the Monthly Candlestick tape action in a stance that favors a much more bearish type outcome.
I am watching the monthly tape particularly close lately and will have a couple charts tonight that describe the important dynamic taking place right now as we switch over into August. Only 4 trading days left in July to finish the monthly candlestick.
These are indeed historical and interesting times. There is still a bullish case to be made, but if we can manage to plunge down into end of July and then start a weak tape for early August, the longer term bear case could really get some good footing.
If the 2007 2011 pattern similarity plays out very similar then we could see August 2011 be a huge hard down month with extraordinary volatility. But I do not want to get too far ahead of myself.
For now, focused on MACD histogram sell signal and moving into end of week, looking for bearish confirmation.