Regular readers know that I primarily follow the Dow Jones Industrial Average, but I also always keep the S&P 500 in my crosscheck because it is the "trader's index." That being said, the S&P has reached (and bounced off) a major level of resistance at approximately 1465. See the chart below (the yellow line is resistance):
The daily scores below indicate a market that is overextended to the upside.
This leads me to the conclusion that tomorrow, in all probability, will be a down day. However, this is NOT a RumWave sell signal. If anything, it could be a quick trade of a day or two. It could lead to a RumWave sell signal but for now bearish trades should be considered a short term gamble. We never got a good "buy" signal thanks to the legislative events so a majority of my portfolio is still in cash.. patiently waiting for the big wave.
TSP: G fund
401k / IRA: Low risk assets for the next little while
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