I would rather not wait around for the sp500 to trickle up. Instead I am going to switch back to BOT Long Signal at 1313 on the sp500 from a previous neutral stance. It looks to me like we are going to hold 1300 here and tread higher in a head and shoulders bottoming formation.
We really need a close above 1317 to make this BOT long signal more complete so I am being a bit aggressive here in switching to the long signal before confirmation.
So far the market has still shown me that it is reluctant to do go down in a very meaningful way.
There does appear to be an inverse head and shoulders formation building since mid February 2011. I cannot speak to the reliability of head and shoulder inverse patterns that form at the top of a previous rally as opposed to after a long basing and correction formation.
I do know that the gold market has repeatedly formed inverse head and shoulder patterns at the top range of previous rallies and has then broken out north from them.
This market looks like it is going to continue higher and maybe a good shot at blasting higher into mid June 2011 as a possible important peak.