The market not only tested the 50 day MA as I speculated yesterday, it went through it like it didn't exist. Which makes me wonder where are all those optimists who just a week or two ago were buying like no tomorrow. Anyhow, the market is extremely short term oversold and I expect a sucker's rally at the very least. The test will be at the Trend Average which today dropped to 1398, if the market is able to overcome it then we can call this a minor W4. Until then, I am hoping we'll get to 1297 first before the market resumes its minor W5 advance to new highs for the year.
Today I re-hedged again and went long with FXI as the Trend Average-VIX*2=1358 (which so happens to be today's low and which calls for an automatic long in my system).
TRENDING WAVES PORTFOLIO
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