3:49pm: The system exits half the short position on the close if SPY closes 137.73 or higher. (Half stop loss rules are in effect associated with system flipping back to healthy status). Otherwise, it remains 100% short.
While I don't like it or agree with it, the system is flipping the status of the market back to "healthy" again. For the purposes of my trading it doesn't matter what I agree with or believe, so I will be closing half of my short position just prior to the close today. Of course, this could change if SPY takes a dive this afternoon and closes down on the day. This scenario is very unlikely given the intraday pattern which suggests continued strength.
I will be content carrying the 50% short position into next week, as I believe another leg down to complete the bear flag target to around 1330 is just around the corner. On the other hand, there is always a chance we go back up next week to test the highs. In that case the stop loss will offer some protection here.
Have a good weekend. I will report the official signal later today...