Thursday, May 1, 2014

New Highs Coming?

The market managed to make another high for this wave today but settled back below resistance. It seems like it is waiting for a good excuse to make a stronger move and my guess is tomorrow's job report will do the trick. I suspect we are in a situation where bad numbers will be considered good and strong numbers will also be considered good considering the market barely reacted to yesterday's flat growth announcement for the first quarter. The pattern is obviously bullish and is looking for a break out. The bears failed to make their case couple of weeks ago and now it's the bulls turn to make theirs.

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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