S&P 500 Update for July 2, 2010

Let's review the "Exponential Moving Average (EMA) Strategy.  The investment parameters for this strategy are very simple.  Go long when the 13(15)-week EMA is greater (crosses above) than the 34 (40)-week EMA. Go short when the when the 13 (15)-week EMA is less (crosses below) that the 34 (40)-week EMA.  Ok, what is the strategy currently saying?  Answer: The trend is still bullish but barely.  The 13- and 34-week EMAs have readings of 1100.56 and 1099.03, respectively.  The 15- and 40-week EMAs have readings of 1103.67 and 1093.82, respectively.  Therefore, the time has come that you definitely want to prepare yourself for a potential "cross over to bearish trend."  [Sidebar: In my thirty plus years of using Point & Figure Charts, I have never seen as many "perfect" bearish set-ups for the various ETFs indexes as I have seen in the past week.  That in itself is scary. I will follow-up with some of these charts over the next two day.]

Some of the inverse ETFs that I am currently following are as follows: DOG, SH, DXD, SDS, TZA, TWM, and QID.