Wednesday, April 24, 2013

Market Update

The market triangulated most of the day and put in another higher high for this wave which is now starting look better as a 5 wave count than an ABC. But since C waves can extend 1.618 (1586), I am still assuming a strong bearish wave will come. However, if this wave ends in the 1590 area or higher, odds are this is an impulse wave which will not be retraced completely, meaning 1536 is the low for the correction and we're seeing a higher degree 5 wave count unfold from that low.

I position traded my VXX in the morning to get a better cost average and now I am getting tempted to close the position at the test of the Trend Average at 1566. But I'll see how the bearish wave evolves after the market finds a top. Anything less than a strong sell off, makes the bearish case suspicious. Especially if the TA turns positive, which it will tomorrow if the market closes above it again.

Main S&P 500 Trends

Short Term Trend = Neutral
Medium Term Trend = Bullish
Long Term Trend = Bullish 

No comments:

Post a Comment