Some people have asked me how to trade with these signals. The short answer is: don't trade the signals and do your own analysis!
OK, now for the long answer. The trading signals are given on a daily basis and may very well flip flop from day to day, sometimes chasing the market. In such a flip flop phase, the market is most likely in a small trading range and the indicator may produce unreliable signals.
The most valuable part of the indicator is of course at times when human emotion of greed or fear interfere with the analysis. It's the well known feeling of "This market can't go any higher/lower." or the exact opposite "This market will go much lower/higher". Markets exaggerate or change their path at moments when the human emotion is not nearly ready to accept and face the new reality. The indicator is completely fine with exaggeration or sudden changes and will trade along with it.
Trading the S&P 500 can be done with many instruments. This can be anything from a simple ETF, options, futures, leveraged ETF and probably many more. Make sure you understand an instrument before using it. Some instruments carry great financial risks!
If for instance you are a long term trader working with an ETF on the S&P 500 (like SPY) then you may not find the need to swap positions (long/short) on a daily basis. In that kind of situation, the trading signal is a sort of heads up of what to expect for the next upcoming trading session. When trading more risky instruments like futures or options, you may want to act right away when the market seems to move in the wrong direction.
At all times, do not take these signals for granted! You should always do your own analysis and see whether you agree with my signals or not. It is no guarantee the trading signals will be suitable for your trading situation. And most important:
Always use a stop loss!
Update: as mentioned in this post, there will no longer be daily market updates. I'm trying to take this experiment of making market calls to the next level.