Even though the NASDAQ Composite looks as if it may just miss its threshold level of 1.4% as of this writing (2 minutes to the close), with sufficient action from leading stocks and QE2 in force, the model is now on a buy signal.
QE2 (quantitative easing) continues to be a powerful force, even more so now after the crisis in Japan. Since quantitative easing has been a significant factor since March 2009 when it began, it factors into the model.
Tentative failsafe is at 2697 on the NASDAQ Composite, or about -1.4% from where it is currently trading. Note, a failsafe level can adjust in small ways with new market data, so please do not act on this failsafe level until it is confirmed by an email.
IWM (Russell 2000)
SPY (S&P 500 - this index contains commodities-related stocks)
UWM (Russell 2000)
SSO (S&P 500 - this index contains commodities-related stocks)
TNA (Russell 2000)
UPRO (S&P 500 - this index contains commodities-related stocks)
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