THE SHORT-TERM MODEL BELIEVES THE TREND IS UP HOLDING NO POSITION OVERNIGHT

The bottom line, well, allow me sometime to dig more excuses to talk you into the bear side. For now, more up ahead, I don’t mean merely a higher high tomorrow.

Tomorrow is the 1st trading day of a month which usually is bullish as according to Stock Trader’s Almanac, Nasdaq up 17 of 23. In addition, the chart below shows we’ve had 4 consecutive red 1st days which makes me think that the 5th time might be different, i.e. we’ll finally see a green day, as the odds of a bullish 1st trading day of a month WAS fixed, unless some fundamentals have been dramatically changed.

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The short setup according to Cobra Impulse System not confirmed today but the system will try to sell the bounce again tomorrow should SPY break below today’s low and close in red. However, in case SPY breaks above today’s high and closes in green tomorrow, the system will be in bulls camp. So kind of decision day for the Cobra Impulse System.

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