Monday, July 22, 2013

Almost there?

The market made another all time high today and it met the Ascending Triangle target from last week. And it seems to me like the market is getting very close to rolling over to start a correction but there might be some strength left to reach the 1710 level, there are divergences all over the place and the market needs a good base to rally from again. So I think we should see the end of this wave this week or next at the latest. As you know I don't normally like calling tops in a market with no resistance but euphoria has its limits, so we'll find out soon.

I am holding on to my VXX position but won't be adding the other 50% unless we reach 1710.

Main S&P 500 Trends*

Short Term Trend = Bullish
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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