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On Tuesday, as the May 2 gap was being filled, I cut back my positions a bit in the Russell 2000. I'm still holding some bullish positions in the Russell 2000 and the S&P 500, but I have cut way back, now only holding up to a maximum of about 35% invested levels (at Rydex, now Guggenheim Investments). I'm still maintaining a bit of a bullish bias, but this is the smallest exposure I have had since the top in early May. For now, until proven otherwise, that May 2 gap, now filled at 1405.82, represents resistance and is a good level to sell into, especially during this time frame, which is historically weak, as noted in Tuesday's column.

I also exited my Intermediate Term Buy Signal as monitored by Timer Digest. Though I actually exited that signal last Friday with the S&P 500 at the 1391 level, it was good enough to get me ranked in the fifth spot for the past 12 months. That signal is also rated third for the past six months. A word of caution: I've had a good run over the past few months and, if history is any guide (as I like to say, it's the only guide), that run is likely going to end soon. That is, the choppy, sideways action that I live for and that my stuff is so perfectly adapted to won't continue forever. When it stops, I'm no longer going to be the hottest thing on the board....318 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.