Wednesday, May 7, 2014

Strong Rally Might Be Coming

The market went for the 1859 support early morning and it rallied from there as I had expected per my post yesterday. The waves have been difficult to label lately due to all the overlapping waves, however I think we now have a clear ABC on the micro count that favors an impulse rally to 1900. Just as I had speculated on a perfect ABC to 1812 few weeks ago and where the market started its current rally, I see the same exact pattern from the 1891 high at a lower degree. The A leg is exactly the same as the C leg and the bounce looks impulsive, forming a micro Inverse Head and Shoulders than targets 1892. But obviously, this count needs confirmation in the next session or two with either a gap up or a strong bullish reversal without breaching today's low. Lastly, the market recaptured the TA so let's see if we finally see some bullish follow through.

I added longs near the lows so I am now 100% long again. I would have gotten a better price if I had been awake when 1859 was tested but I was busy dreaming of Lana Del Rey.. literally.

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.

No comments:

Post a Comment