Thursday, January 9, 2014

Break Out Tomorrow?

The market seemed like it was following a 5 count at the open but then it reversed completely to test the 1830 level again, which has held well so far as every single attempt to breach it has resulted in decent bounces. Normally, IHS break outs are in form of a W3 and the market left a 1-2 on the micro-count towards the end of the day but should this coming wave fail to fully break out of range tomorrow morning then support will probably not hold so well next time.  So everything comes down to the jobs reports tomorrow , what remains to be seen is how the news will be received. A strong report should result in a new all time high IMO but since now the idea of good news accelerating taper is floating around as a sell excuse, we could also see a bearish response (never mind the market rallied like crazy the day taper was  The bottom line to me is, if the economy generates the estimated number of new jobs then it's all good. So as tempted as I was earlier today to buy back VXX, I will wait for an even better price to buy back. Last but not least, the market closed again above a flat lining Trend Average so there will be a significant move very soon.

Short Term Trend = Bullish
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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