Stock Market Update - May 5

The market decided to test the 1870 level as I imagined on Friday's post and the market didn't even blink eye before rallying back to where it started. So per my statement;

"retrace back to at least 1870 and form a base to attempt another rally to take out the all time high once in for all"

I think there will be another challenge to the all time high again tomorrow unless something really bearish happens overnight. The patten as I've said before is bullish and trends continue to support higher prices. I am however keeping an eye on a possible rising wedge as you can see on the chart so any reversal at the top trend could set the market up for a sell off. A breakout of the trend would imply this is a nested bullish 1-2 set up.

My original plan was to sell my hedge at a low today but I was sleeping when the market was the low level and too high by the time I woke up. So I am keeping the hedge just in case as it's not that big of a position and I am looking to sell my longs from last week at the trend or at the end of a 5 count if that's what the market is planning to do. Last but not least, the ISM report is strong so I suspect whatever summer correction we get might be just to the 200 DMA.


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.