Wednesday, June 19, 2013

Another Zig Zag coming

The market broke out of its wedge today and confirmed the count was complete yesterday. So now I am expecting a test of support again and perhaps a bounce back to the 1640-1646 level before resuming a stronger bearish wave. The marker closed before the TA and needless to day, the ST trend will turn red again if the market follows the path I mentioned. I'll try to project downside once we a clear bearish W1 finalized but for now should the market bounce from support and head up to resistance, the downside projection is about 1590 more or less for what should be the second A wave of this double zig zag correction that started at 1687. So this WXY structure should be complete in July  or August at the latest and then see the resumption of a LT Int W5 to 1800 according to the LT count.

I bought back FXI today and improved my cost there and I am planning to buy VXX and position trade again on the bounce.

Main S&P 500 Trends*

Short Term Trend = Bullish trend being challenged
Medium Term Trend = Bullish
Long Term Trend = Bullish 

* Trends are not trade signals. Trends are posted for situational awareness only and does not take into account wave counts, technical or fundamental conditions of the market. While mechanically trading the posted trends is feasible, keep in mind that these are lagging indicators and as such are prone to whipsaws and I personally do not use nor recommend them to initiate or close positions in the market without taking into consideration other factors.

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