Tuesday, September 3, 2013

50 day ma test?

The market opened up bullish today and managed to test the Trend Average before giving up a good portion of its gains. This whole Syria thing makes the markets (US markets particularly) nervous and the next significant move seems to be tied to what the US decides to do militarily. So in the meantime we might see the market stuck in a range between 1626 and the 50 day ma (currently 1661) until traders make up their minds. The current wave from the low could technically be labeled as a B to be followed by more downside on a C but as I said last week, I don't believe waves are able to predict actual events, just investor sentiment. So I will be waiting out for support/resistance levels to enter a trade to be on the safer side and avoid being a bag holder on these wild intraday moves. Personally, I prefer they give military support and weapons to Syrian rebels (if the allegations are proven without a doubt) as opposed to a direct strike as the only thing we might get is another civil war with yet another Islamist party calling for the destruction of America and millions of dollars (which we the tax payers have to pay) completed wasted.

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.

No comments:

Post a Comment