10 June 2014

The intra-day charts have come out of overbought and should show a lower high while having an influence on the ST.  Only then will we see a CIT.  A negative divergence would also be a possible indicator of a CIT but with prices making a higher high. 

The signal would only work in an hourly basis, so remember that if your intra-day signals turn against you while the ST has not changed in the same direction as your trade, then the next course of action is to exit the trade until the intra-day signals turn in the same direction of the ST.

On a longer-term basis, notice that when the MT and ST are not in sync with each other, the trend is hard to read.  It may also form a sideways pattern.  Keeping this in mind, and trading only  when all indicators are flowing in the same direction guarantees high probability of profits. 

Our MT and ST have been in sync since May 21st, and the evidence of both indicators in sync shows in the highlighted GREEN box, a move of 70 SPX pts. to date.

MT: UP
ST: UP
PA: NA