I have been writing repeatedly on the importance of holding the weekly trend line, and I was worried just like most of you I imagine, when SPY went way below it in the first part of the week, but then the bulls kicked in and in two and half days managed to regain the line, making a weekly hammer and a very nice bounce off the weekly trend line. SPY still needs a follow through next week but if it occurs and so far the signs are good we are looking at new highs soon. However we are approaching the daily trend line so we should see some resistance here first.
The low of this week has also established a rising channel from the 6/24/13 which will be a future support (see chart below).
In the short term the system has done very well lately making over 7 points of profit while SPY made only 0.3 points. The system holds long position on both intervals, for exact stop values you please read here
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