We don't see much reason to be optimistic in the indexes.  True, we're still within the monthly bullish timeframe, but only for one more day.   Every other indicator is now negative.  Note the cap formations in both the S&Ps and Russell, not to mention the extreme negative numbers on the Daily CzarChart.  (One might even suspect the fundamentals might fall in the bearish line, but let's not get carried away.)

Dynamic Monthly Biases for September 6

Flip from long to short in the Russell.  Hold shorts in the S&Ps and Nasdaq.

The bottom two rows determine the signal.  Dynamic Day One trumps everythingâ€"you always follow it.  When it's neutral, the Monthly Perpetual provides the direction.  Click here for a more in-depth explanation of the rules.

Daily CzarChart for September 6

The bottom row provides the direction of the bias at the open: long (L) or short (S).  When it's neutral, it will read zero (0).  Click here for a more in-depth explanation of the rules.

DISCLAIMER: It should not be assumed that the methods, techniques, or indicators presented in this column will be profitable or that they will not result in losses. Past results are not necessarily indicative of future results. Examples presented in this column are for educational purposes only. These set-ups are not solicitations of any order to buy or sell. The author, Tiger Shark Publishing LLC, and all affiliates assume no responsibility for your trading results. There is a high degree of risk in trading.

Art Collins is the author of Market Beaters, a collection of interviews with renowned mechanical traders. He is currently working on a second volume. E-mail Art at artcollins@ameritech.net.