Still on a sell

Nothing much to add here other than the sell signal from 2/2/06 holds. The next dynamic support on the SPX cash comes around 1244 on the daily charts. Once the 1244 support is tested, i will start looking for a buy signal at that point. So far there's no bottoming action to speak of. So let's give the benefit of doubt to the downtrend.

As a side note, there's too much dumb money shorting this market. Advisors are very bearish. There's too much talk about the expected 4-year cycle bottom this fall. All this means the 4-year cycle bottom this year will be a muted affair in my opinion, not the mega decline many are expecting.