Wednesday, August 14, 2013

Short Term trend bearish confirmation

The market is now back again in the 1680-85 level for the 8th time since late July but this time the Short Term Trend is bearish due to the TA turning down, so we'll see if the bears are able to break this fairly robust support level. The TA signal usually gets whipsawed on W4s so I wouldn't give it as much weight as I normally do and the potential 5 wave count I posted about yesterday still remains in place until 1682.62 gets breached. The market has obviously been in a correction for a while but so far it has corrected mostly on time and little on price and unless there is some major excuse for a stronger bearish wave, my guess is that even of we get a "sell off" the 50 day ma will likely hold.

I sold my VXX again at support early morning for profit and will be looking for another entry point for position trading.

Main S&P 500 Trends*

Short Term Trend = Bearish
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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