Couple of weeks ago I stated "If the current bearish wave turns out to be a C wave and it equals Ax1.618 in length, we will see a test of the the 50 DMA around 2040". Once tested, the bottom left a bullish pattern. "The close sets up a potential small Inverse and Head & Shoulders that targets 2080 more or less". And today the market rallied to 2084 in what potentially could turn into a bullish 5 wave count. While the count could be a zig zag and another "sell off" could come, I am leaning bullish because of the long term and medium term trend. Still, I am not getting greedy so I sold half my longs for a decent profit and raising my stops on the rest to the Trend Average level. If the current wave can make it to 2100, we could see a set up that will challenge the all time highs.
And speaking of ATH, it's been a year since the market made it to 2134. The bearish way to look at this is that the market is still in a topping process. The alternative, which sounds more reasonable to me is that these last 12 months has been a sideways/time correction and there is now enough of a base for a LT W5 to complete. So perhaps we will have a very bullish summer if bulls can finally gain traction.
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Short Term Trend = Bearish trend being challenged
Medium Term Trend = Bullish
Long Term Trend = Bullish