Monday, May 6, 2013

Bull Flag

The market consolidated today as expected and it seems like it's buying some time before launching to yet another high. There is a bull flag in place that targets 1634 and it was already there on Friday but I forgot to mention it. So I am expecting the 3rd wave to finish at that level, consolidate some more and then launch a final bullish wave. Technically speaking the 3rd wave could have ended today as a higher high was put in but until I see a significant retracement, I will assume the target is 1630's for the w3. The Trend Average is now closing in on 1600 and it might even catch up to the market instead of the market going down for a test.

I traded the VXX position again for a minor gain and perhaps I will buy back the position in the 17's. Today it dropped almost from 50 cents from the price I sold it on Friday so hopefully we will see the cup and handle pattern complete or at least see the market get to the ideal Int W5 target. I am hoping to buy a new yard fence with VXX money :)

Main S&P 500 Trends

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

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