The market started to rally today as I had been expecting but it decided to first test the 1597 level I mentioned a few days ago by putting in a low of 1598. And with that the original target of 1590-1600 I had when the first bearish appeared and the head and shoulders target have been met. Just too bad the market got there in a zig zag and not in the 5 waves I had been hoping for as I would have made a lot more holding VXX. Nonetheless, I will enjoy the ride on the way up and will load back up on VXX for perhaps another round of selling? But before I get ahead of myself, the market needs to get back to the TA level and overcome it in order to put in a decent rally. The TA is currently at 1637 and perhaps the market will find resistance and retrace on a W2/B wave then. If the market makes it to 1646 without a pause , then there is a good probability the all time highs will be taken out. As I said yesterday, I am labeling this bullish wave an X but we have to keep in mind the market has already corrected enough and gotten close enough to the 1580 ideal level, so it is free to zoom its way past 1700. The answer will be on the next bearish wave.
Main S&P 500 Trends
Short Term Trend = Bearish
Medium Term Trend = Bullish
Long Term Trend = Bullish
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