7/5 3:40

SP futures 30-minute M/A has held the first test.   SPX and DJI have topped.  Nasdaq is filling out it's 5th of c.  I don't hold any Nasdaq shorts and will attempt to enter futures short on break of 2353.25.  I'll short SP futures on a rally after a 30-minute close below 1326.

The stock market is making a head-and-shoulders top. Although the smoothed I1 declines into late August the ensuing I1 advance stays well below 3.25 which, according to the rule set in the Intro and Concepts page, means that longer-term traders can stay short.  I intend to keep a small core short position but will go primarily to cash on these swings. On an even longer time frame the market declines into 2nd quarter 2012.

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