The Original Turtle System Gives a Short Signal on the SPX

Turtle System Short Signal on SPY

Turtle System Short Signal on SPY

The price on the SPX broke downward out of a 20-day price channel yesterday. The original Turtle System, as described by Curtis Faith in Way of the Turtle (a book I highly recommend), called for traders to enter short positions on a downward breakout from a 20-day price channel.

In fact, the price moved far enough after the breakout for the original Turtle system to have called for traders to add to their original short position. Continue reading