Tuesday, May 27, 2014

All Time High

The Trend Average was right and the market invalidated the H&S pattern I was tracking and trading. It is clear now that we are seeing a bullish W3, so I did some calculations and I have a 1925 target for the wave that started at 1862, so we should see the W4 tomorrow or Thursday. The previous indexes that lead the sell off a few weeks ago are rallying, and if their momentum continues, we will see a sustained rally on the SP500 for some time. However, I still see the market in a Rising Wedge in the longer term time frame and I'd be surprised if we don't get a summer correction at all.

I stopped out of my short position early today and will consider re-entering if the market gets to the 1925 level. Anticipating a trend change is always hard but at that level there will be enough of a deviation to enter a lower risk short targeting at least a test of the TA. For now, I am all cash and waiting for an opportunity.

For further analysis onNASDAQ, DJI, RUT, Gold, Silver and Oil please visit http://www.ewaveanalytics.com

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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