4pm: The system moves to the sideline after taking about a 1% loss on the short position. There is too much uncertainty to be long or short right now. If I had to guess, I say we go higher from here though.
The short position will be closed if SPY finishes flat or higher today, even if it's only by 0.01. If SPY finishes in the red, we'll maintain the 50% short position. Right now it's too close to call, so we'll have to see what happens. Yesterday and today should've been the best days for a quick pullback to occur. Since it never really happened, I suspect we'll go higher this week. The bears only hope is if SPY finishes down today.