Monday, July 8, 2013

Inverse Head and Shoulder target to be met tomorrow?

The market gapped up today as I had been expecting and looking at the micro count it looks like it might gap up yet again to meet the Inverse Head and Shoulder target of 1648 and the end the W3 of the count I have on the chart. There is resistance at 1646-48 so if that area breaks we could see the market go for 1654 and create the perfect neckline of bigger IHS targeting 1750. Earnings season is here so maybe this will be the factor that will used to continue the rally or put in one more intermediate bearish leg to finish the correction.

I will be position trading tomorrow and shorting in expectation of a neckline but obviously I will be quick to take profits with shorts as it seems like the right trade is on the long side as long as the indicators are bullish.

Main S&P 500 Trends*

Short Term Trend = Bullish
Medium Term Trend = Neutral
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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