http://stockcharts.com/h-sc/ui?s=%24SPX&p=D&yr=0&mn=6&dy=0&id=p38955316076&a=266398464

Our last letter may have sown confusion in some of our readers.  Let us straighten it all out.  If one were trading the system we have been using for the last 9 years the three leaping… would be a strong buy signal.  That’s in a strong bull market.  In the present markets  only the bold trader would venture a trade.  And, just that — a trade of five to 10 days.  It would require continued progress for the trade to last longer –with rapidly rising tight stops.

In sum the markets continue dangerous and only adroit traders should attempt positions.

A longer more comprehensive letter follows.