If I was a betting man, odds are the S&P is headed south. We Are still above the 20 dma, but moving averages are all out of wack not at all the way you like to see them if your bullish and volume pretty low.

We are on an adx/dmi SELL signal, and the MACD is turning over. I exited my long positions Friday for quick $2 profit in QQQ last week. Technically my system is still long, but any downward movement Tuesday would change this. So I am in an wait and see mode.

Using a method of peeling off a trade as it moves into your favor let me turn quick profit in QQQ, move stops to break even creating a "risk free" opportunity. When price bounced off the 50 dma we played it safe and sold another 1/3. Turning a "risk free" trade into small $2 gain.

Friday our stop was hit. If market decides to hold current level, we will be looking to go long again. I've stop trying to predict direction and just way the evidence but be ready for what ever opportunity the market hands you. Sometimes it will be exactly opposite what you thought. A macd that is "turning over" can quickly turn back up, adx/dmi sell signal can quickly become a buy signal, price can turn a downward slowing 20 dma into flat or up sloping ma.

If you know what your signals, market can do what she wants too.

Gerald Peters
The Money Flow
Daily Income