Thursday, November 7, 2013

Beginning of multi-month correction?

The Rising Wedge was completed today with a slightly higher high but not an all time high on the SP500 (The DOW put in an all time high). And this could possibly be signalling the end of the rally for this year. The only thing that could favor the bullish side is if the market is actually putting in an ABC move for its W4 (the one I have at 1752) so we have to see if the wave I have labeled as a bearish W3 continues or we see a sudden bullish reversal.

I was going to buy back VXX at a new all time high for the SP500 and the index came within less than 1 point of that. But since it reversed, I ended up backing back at the break of the Rising Wedge which still made it a profitable move. So now we'll see if the TA turns red tomorrow so I can better project downside targets.

Short Term Trend = Neautral Leaning 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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