The September Mini S&P is 3.75 points at 1002.75 this morning as I write. The price trend for the stock market still looks bullish despite this set back this morning. The directional movement indicators are still bullish. The green directional line has begun to converge but not the red line yet. The purple ADX line continues to rise, at 41.08 on the index this morning. I am looking for when both the red and green lines are converging, then followed by the ADX line rolling over, before I get any kind of sell signal. For now, I am flat in the S&P futures.

If you are long in the stock market itself, then stay long, but consider taking some profits off the table, and/or writing some call options against some of your stock position for partial protection.

Aug. 10, 2009
David Hall