Both systems are going long today. Several indicators inside the JTS are pointing toward a short term bounce. Some caution is advised as the half-stop for the JTS is at a very tight SPY 139.81. Any dip below this level flips the system to unhealthy and warns of a possible correction. Meanwhile, the CCI is giving a mature trend buy signal. The last time this happened was March 6. Go check what happened immediately after that signal.
I saw an interesting tidbit on sentiment today. 4 times the amount of money is invested in bullish rydex funds than bearish funds. This is an 8 year record spread. Not a good sign for the market going forward! The sentiment data I use in the JTS (from tsptalk.com) is neutral and has been most of the year.
Back on the topic of market health... using the rolling inside-outside reversal method, the 10 candle range extending from 8/7 to 8/20 was exceeded to the upside on 8/21 and now I'm just waiting on a dip below the range within the next week or so. If SPY can't fall below 139.81, the market will remain healthy and more gains would be likely. The 10-day range from 8/7-8/20 is the smallest I can remember. Only ~22 SPX points from bottom to top. Things could get real interesting soon if we exceed to the downside.
A short-term bounce from these levels is a more likely scenario. After that, who knows...
I'll be closing all shorts and going long today.
(click to enlarge)