Friday, January 3, 2014

Triagle or Bullish Nested 1-2

The market took another stab at the low from Thursday but it ended being a higher low, which could be interpreted as a nested 1-2 set up targeting 1850. At the same time, one could make the argument for a consolidating triangle forming a base for another bearish wave so the short term direction is not very clear. The count however does favor this being some sort of consolidating wave before another high and the chart would have a better look if that was the case. But with Trend Average being challenged, I wouldn't bet on it. The key levels to watch are 1827.74 for support and the 1838.24 for resistance, whichever breaks first will likely point to where the next wave is going. I am holding on to my positions but will probably close one of them depending on where the market goes.

Have a Great Weekend!

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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