SPX is wondering around hourly EMAs which is exactly how it is supposed to happen. As long as the index stays above rising 5 days SMA our longs are safe. Worse case scenario, SPX moves bellow 1194 and we are going to cash the profit and switch sides.
As I said in the previous days if you are nervous and want to get a better exit point you can exit now but what are you going to do if market continues to rise? Stay in cash and miss a great opportunity to increase your portfolio value, re-enter at a higher price than you exited? Nobody knows when a trend is going to end. I prefer to lose 20-30 points but be disciplined and stay long until I see the "sell" signal. Nine out of ten times I exit based on gut feelings instead of what the charts are telling me I regret. Lately I became much more disciplined but at the beginning of the year I made some mistakes and exited too early. In general I don't have a problem with entering the market either long or short but many times I find covering or selling nerve racking.
Now, I am going to ask you a favor, can any of you teach me how to modify the html script so when you click on a chart it opens in a big new window? I am really frustrated to post this small charts. This the maximum size I can post on the main page but I know it is possible to enlarge it when it is displayed on a separate page. Blankfiend, anybody?
All the best!