The ABC wave was confirmed today and we have a potential set up for more downside, potentially targeting 1600 if the bearish wave today was a W1 . But as I said yesterday, the market has to deal with the 1620-26 area first and I suppose what we get next week will depend on what decision the Obama administration takes on Syria. Which so far looks like a limited strike after the UN inspectors leave and possibly after labor day. Personally, I feel the administration should get congressional approval to do this as our representatives should have a say in this since citizens can't do a referendum. But I guess it's just wishful thinking as the executive branch does pretty much whatever it wants now days. I just hope this doesn't come back to hunt us in the future. I can't think of anything positive that has come out from US intervention in the Middle East since the 80's.
Anyway, no trades today as I prefer to see the market's reaction after a decision is made. I believe wave analysis and TA can gives traders an advantage during normal market conditions. But trying to predict siginificant future events with these tools are no better than a coin toss.
Have a great and safe holiday weekend!
Main S&P 500 Trends*
Short Term Trend = BearishMedium Term Trend = Bearish
Long Term Trend = Bullish