The hold signal was confirmed. The system remains 100% short. SPY never had a chance to get anywhere near the buy signal. The VXX warning did not materialize as VIX closed the session in positive territory.
The market remains unhealthy, but barely... A green SPY candle tomorrow or possibly Friday will flip the system back to healthy mode. This would unfortunately stop out half the short position with another (partial) loss. I'm counting on this not happening.
If SPY closes below 138.07, the system exits the short position and opens a 100% long position in TNA. Otherwise, it is a hold signal keeping it short.
Right now I'm getting a VXX warning where VXX is up and VIX is down. This is short term bearish. But it won't be confirmed until the VIX settles at 4:15pm.