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Swing model sell signals are historically less reliable on their own and therefore require an additional step before triggering. This additional step is basically just waiting one session before acting. This cuts down on whipsaws and can result in a better entry the next session. On Friday we got a swing sell signal at SPX 5860. This morning, I mistakenly said the model was triggered short at the open, around SPX 5780. That was wrong. What I should have said was the swing model would go short at SPX 5860. We didn’t reach that level, so the model would have shifted to cash at Monday’s close at SPX 5836. It would still short at SPX 5860 or better on Tuesday, but only if a buy signal isn’t triggered first (all new signals occur shortly after the open).

That’s how it should have been reported. Nonetheless, I will record the short at SPX 5778 on the official record along with an exit at Monday’s close. Model will re-establish a short on Tuesday at 5860 or higher, but only if a buy signal isn’t triggered. A separate note will go out Tuesday to confirm.

Going forward, I will issue a note when an original sell signal is triggered and a second note the next session when it’s confirmed (or not). This will hopefully prevent this sort of error from happening again. My sincerest apologies.

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