SPX Technical Analysis

Bailing out...

We are going to exit all of our positions not controlled by mechanical methods to 100% cash at today's close. Today's jump was based on an unexpectedly positive GDP report and opened with a gap. Honestly with two recent false breakouts and a market largely driven by the price of crude oil, we're not very confident on technical patterns right now and not very impressed by a gap open jump based on news.

False breakouts

A recent large Head-and-shoulders Bottom (HSB) appears to have been a false breakout just like the last one in May 2008. We believe a retest of the lows is possible.

Luckily, the mechanical strategies that control most of our accounts have been performing very well. Our recent poor performance following discretionary technical patterns is exactly why we've strongly advocated diversity of strategy over the last 15 years.

Lastly, we are about to get back on track with the new ULTRA Timer Report which will be in a new format and much more timely. Details will follow very soon.

Sincerely,
Steve Hunter, ULTRA Financial Systems LLC