Market Update

The ABC wave was confirmed today and we have a potential set up for more downside, potentially targeting 1600 if the bearish wave today was a W1 . But as I said yesterday, the market has to deal with the 1620-26 area first and I suppose what we get next week will depend on what decision the Obama administration takes on Syria. Which so far looks like a limited strike after the UN inspectors leave and possibly after labor day. Personally, I feel the administration should get congressional approval to do this as our representatives should have a say in this since citizens can't do a referendum. But I guess it's just wishful thinking as the executive branch does pretty much whatever it wants now days. I just hope this doesn't come back to hunt us in the future. I can't think of anything positive that has come out from US intervention in the Middle East since the 80's.

Anyway, no trades today as I prefer to see the market's reaction after a decision is made. I believe wave analysis and TA can gives traders an advantage during normal market conditions. But trying to predict siginificant future events with these tools are no better than a coin toss. 

Have a great and safe holiday weekend!

Main S&P 500 Trends*

Short Term Trend = Bearish

Medium Term Trend = Bearish

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.