It’s looking more and more like the Alphahorn System exited right at the top of wave (3) and re-entered very near the bottom of wave (4).  Today’s rally was either the beginning of the run to the upper 1500s for the SPX or another x wave in wave (4) that will be followed by another relatively small correction to the solid lower trend line below on the 60 min chart.  9 of the 10 positions held by the Alphahorn Swing System have returned to positive returns, only the Teasury short is a loser (and for many it was a small loss on the stop, but since the System turned to a SELL/SHORT for Treasuries, I’ve left the trade open).  If the market behaves as I’m expecting it to for the remainder of the year, then 2012 returns for the System, currently 32.77%, could reach 50% possibly higher.    Unfortunately, many subscribers gave up on the System during the choppy 2nd quarter and early part of the 3rd quarter when it took a draw down.  But it has more than recovered and is now poised for the next run.

The NYMO did turn up today, likely confirming the preferred count that wave (4) ended today.

The 60 min SPX chart below shows that for now it appears that intermediate wave (4) found support at the dashed trend line and that wave (5) is underway.  For this to be true, 1430 must hold.  Should it fall, then the solid trend line should hold the correction.