Quote from mizhael:
I am rereading your note and I just had another question:
When do you turn the longs on?
--> "avoid longs when the S&P 500 is below the sma(200)."
When the S&P 500 is above the SMA(200). At least I do something very similar to this in my 401K. In my active trading I also do something similar but on a much shorter timeframe.