Monday, August 26, 2013

Intermediate Trend being challenged

The market had a reversal day today for what seems like part of a zig zag or perhaps a bearish W1. The close was very bearish given the market lost the trend average and the 50 day ma and now the Intermediate Trend might turn red as well so unless the market rallies hard and overcomes the main resistance area of 1680-85, chances are the lows will be revisited. Nonetheless, the market has been correcting over 3 weeks and is potentially setting up a base for a bigger rally. But for now, we'll let the trend guide us through the turbulence.

I bought back VXX at a better price at 1667 and keeping it until the market trades above the 50 dma or tests the lows for this month.

Main S&P 500 Trends*

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