Friday, September 13, 2013

Bullish Monday?

The market seems like it is finished or about to finish its W4 consolidation, setting itself for a bullish W5 early next week that should target the all time highs at 1709. But first the resistance at the 1697-1700 level will have to be dealt with so we'll find out soon if the market has enough momentum to push through these levels. I find it interesting that markets are basically at an all time high just 5 years after Lehman Brothers collapsed (5 year anniversary is Sept 15), very few people were able to predict the financial and market collapse in 2008 and not many expected the markets to rebound the way the did in just a few years. In a way it almost feels like it was just an average event in history when in fact it was probably a once in a few decades event. I guess a good question to ask ourselves now days is are we better off today than 5 years ago?

Anyway, I will attempt another shot at VXX if we get that bullish W5 early next week. What comes after the top is really anyone's guess but I personally lean towards s continuation of the bull market as long as ALL trends get back to green, which implies any correction that we get will find a bottom near the Trend Average/50 day ma.

Have a Great Weekend!

Main S&P 500 Trends*

Short Term Trend = Bullish
Medium Term Trend = Bearish 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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