Correction

The correction seems to have started on Friday. However, I didn't see the gap I was hoping for and instead we saw a spike during trading hours. So I still see a possibility for a gap to 1180 before heading down on Monday but if we gap down then the correction will be confirmed and the market should be crossing the TA early next week to the downside. If the top holds, I see 1120's as good place for a bounce but since this is a W2 this could go all the way down to 1075 and still be valid. Given the volatility in the market, I'd be surprised if the market behaves as expected. I am still hedged and will only go short if we get that gap, otherwise I'll short it at the break of the TA on Monday or Tuesday..

As of this week, the trading system is up 21.3% since July 28th 2011 vs -15% for the S&P 500.