The market managed to bust through the 200 day MA as well as the Trend Average and if I were to take a guess now, I'd say we'll probably get the trend reversed to the bullish side in the next couple of days. The market has set itself up for an potential inverted Head and Shoulders so watch the area around 1298 level as it can a nice long set up there. What wave is this in the intermediate sense it's hard to tell just yet, I have to sit down and look at this with time. One thing that I assume is that this whole thing has been a correction within a bull market and that will remain the case until we get a "death cross". Some people have been debating the usefulness of wave counts and like everything else nothing is 100% when it comes to predicting the stock market. However, I follow a clear system here that follows 3 basic trends based on moving averages and trend averages. The long term, intermediate, and short term. If the long term numbers are pointing up, there is no need to be Nostradamus and call for massive crashes at the first hint of a correction. I rather be late at the party than miss the party altogether. The trend is your friend!
One on my next projects will be to publish returns for the long term and intermediate confirmation signals. They are obviously behind in terms of market turns but at the same time one avoids whipsaws that happen with shorter term signals.
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