3:50pm ET: Short signal confirmed. It is a strong short signal as long as SPY remains below 129.63 today. A close above 129.63 makes it a relatively weaker signal, but a 50% short signal nonetheless.
As I mentioned before, a green SPY close tomorrow (incidentally, an FOMC day which is seasonally bullish) puts the short signal in doubt as the system will flip back to healthy status. Good evening.
It's quite apparent today that yesterday's sell signal was a bummer, but on the bright side we are not short. That will change today - most likely. I am getting a short signal this morning which will probably remain valid into the close. Since today appears to be a true trend day, I would expect the day to slowly melt up (with a few small dips here and there to take out some stops) finishing near the high of the day. Thus, it would be unwise to try to short this action until ~4pm.
Another important thing to note is that if SPY finishes green today and tomorrow, the market status will flip back to healthy. It will then remain healthy until either the 6/16 low of 1258 is breached or until we make a sustained run to the upside and undergo another topping process. I will detail my healthy and unhealthy indicators in a post sometime this week.