Thursday, September 5, 2013

Market Update

The market made another higher high today and it seems like it was to test the 50 day ma before another significant correction. The real question to me is whether the entire correction from 1709 is over or not, looking at the chart on the daily it looks like the market is ready for a bull run but as far as wave structure the ideal would be one more significant leg down. I guess we'll just have to wait to see how the market reacts after the actions we take on Syria and tomorrow's jobs numbers. A strong jobs number will add selling pressure in the short term but in the whole context of the economy it means the conditions will be there for a longer bull market. With the rest of the world doing better and better we might just have a period like 2005-07 when markets around the world were booming. And btw I don't think a strike on Syria will do much to oil prices, in the market sense, this is just an excuse to correct.

Main S&P 500 Trends*

Short Term Trend = Bearish trend being challenged
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.

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