Every signal is a valid signal but how long the signal is valid for, depends entirely on the market and the next signal. A friend asks whether the market has changed direction and if it is Up or Down.
The current signal is Up on SPY (S&P 500 ETF). The signal triggered on 7/2/12. Last Friday end-of-day there was another potential buy signal generated with a 139.07 buy stop. That means if SPY goes above 139.07 which was Friday’s high, then the second buy signal will trigger. There is no information available on how long the signal will last; but the market is trending up for now.
A well known market analyst says that the market should rise until early August and then will fall precipitously until the middle to end of September after which the low of the year will come and offer an intermediate buying opportunity. If he is correct, then a cautious buy is all I can suggest. Unfortunately I am not a soothsayer past tomorrow…
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