System Plummets

My system has moved sharply lower to +350 and the sell signal is still on. The momentum to the downside in my system has picked up impressively. While we have reached the +250 to +650 area where shallow corrections tend to end, I would not try to be a hero here. The momentum in my system plus unreached downside targets in various indices continue to dictate caution as the best course of action. If this correction ends up going to the -1000 level, that will be where we can get bullish again and if this is a true cyclical bull, then the market will move up accordingly from that spot. This lull before earnings in July will likely be difficult to trade and so it is best to watch here. The Dollar should have risen significantly today but only mildly went up and that seems to indicate a possible divergence from the $SPX and we'll have to see how that plays out over the next couple of weeks.