Wednesday, April 18, 2012

One more push up?

The market seemed to be in consolidation mode, which goes well with the W4 option for this particular wave. So the structure favors a push higher tomorrow before turning down again. As of now it's hard to tell if the this wave is part of an impulse or a corrective wave but the coming next bearish wave should give us direction for the rest of the month. The trend average fell again today and it is at 1379 while the 50 day MA is at 1378, if the market manages to test these levels and bounce from there then we see a higher high for April. However, if support doesn't hold then the intermediate trend will turn bearish and will essentially increase the odds of the beginning of a bearish period.

I traded SSO today but got stopped out as the pattern I was looking did not hold. But looking for a higher high to unhedge my VIX positions.


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