Our outlook for today – Wed, 06/20 – published last night stated: “For Wednesday, the aggressive/intraday models indicate trading from the short side (sell) while the index is below 2755, and from the long side (buy) while above 2765.” (click here for the full report).

Per the trading plan, our short-term models are currently – as of 12:52pm EDT – long (from 2765.50), with a stop loss at 2760. Models just raised the stop-loss to 2768 and would likely leave it there for the rest of the session. 

NOTE: The session today tested two important key levels we mentioned in the report: 2765 (the Index’s low so far reached 2763.91) and 2775 (the Index’s high so far reached 2774.86) – yes, both reached within one point! 

Crystal Ball? While the accuracy of the forecast of the models might seem uncanny at this level of precision, it is to be noted that quantitative models do NOT consistently work this well. So, do NOT feel tempted to make “bet-the-farm” kind of trades based on our models or anybody’s models. Always be cognizant of the two sides of the coin: potential reward AND potential risk. 

Happy Trading/Investing!