Monday, March 24, 2014

Market Update

The market continued to sell off today and invalidated the possibility of a nested bullish 1-2 set up. However, support at 1850 held quite well and given the micro count on the bounce it looks like it wants to go for 1874-83 again. If we get this bullish way to resistance then we might see an Ascending Triangle that will target 1927. Obviously, it is too early to tell but I will be trading it as such until key levels break. So far the market has been correcting sideways since the bearish daily crossover on the MACD so this could be the base for another substantial rally to come.

I bought the pharma stock at near support today so I am all long. The close was under the TA and the ST trend continues to be bearish so it is risky but as long as support holds I am looking for further upside.

Short Term Trend = 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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