The short-term model is overbought, so that is the exit on a somewhat volatile trade. The current price is 74.91 which is up a bit from 74.30 at the entry for 0.82% gain, but another successful trade all the same.
The way I see it, the trend is shifting to up now in the intermediate term. I would like to see a follow-through day to confirm an uptrend. This involves a price and volume explosion to the upside. There are different criteria to define those, but Investor's Business Daily uses a simple definition where price rises more than 1.7% and volume is higher than the previous day.
That being said, for anyone following these trades, a good strategy to use is to gradually move a stop loss up as the market rises to try to let your winning trade really cash in. So while the short-term model is overbought, realize that the market could still go quite a bit higher in the coming weeks and you may consider a trailing stop technique instead of an exit at this point.
Pete
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