The market continued to sell off earlier in the morning and tested the Trend Average as expected. However, loses were reversed for the rest of the day and a test of the 2050-2065 area doesn't look as likely anymore. Unless the pullback that started earlier this week turns into a complex correction, we could see prices headed for a bullish break out as soon as tomorrow. The excuse for today's turn around is the Feds holding on rising interest rates because of Brexit, which should not come as a surprise as Brexit is essentially a bullish event for the US stock market. As I stated here few weeks ago;
"My guess is that the Brexit side will win and that will help the market get to 2025. However, once the dust is settled, the potential of a recession in the UK and the rest of Europe will force the Feds to not raise rates, which in turn is bullish."
Anyway, I went 50% long after the market bounced off the Trend Average and set the stops at 2074. I will buy the rest once I see a clear micro-count evolve. Last but not least, China is starting to show signs of a break out so hopefully bullish momentum will continue in the next few weeks to confirm.
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Short Term Trend = Bullish
Medium Term Trend = Bullish
Long Term Trend = Bullish