The market looks like it completed the A leg of this correction and we should see a retracement early next week for the B leg. And as I expected the market tested the TA successfully today and bounced right off, however if the B wave does not bounce hard then the C wave should breach the TA and possible change the bullish short term that has been in place since December 21st. So I covered half my shorts and sold half my VIX positions at the TA and raised stops to break even, however due to how volatile this ETF is I got stopped out at break even on the other half. But should the B wave come as expected, I'll just buy it back at a lower price so no harm done.
Today is the first time we have 2 consecutive (on the SP500 that is) down days since the Santa Rally started so the market does need a breather. Also, we should have the Golden Cross next week so we will be officially in a bull market but these same moving averages are very likely to be tested when the entire wave structure is done. So the place to get in this rally is at the test of the 50 or the 200 day MA.
Have a great weekend!
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