Thursday, May 9, 2013

Market Reversal

The correction I was expecting seems to have started now that we have a reversal day and the first negative day since the break out from 1598. But the market did manage to put in another all time high despite selling pressure early morning and exceed the Bull Flag target from last week. At one point it seemed like the market was reversing the selling and starting a new bullish wave but with 1626 breaking, it now seems likely that there will be more downside. I am looking as I posted yesterday at the 1612-1618 level and the Trend Average. Technically speaking, the high today got close enough to the "ideal" target I have for the market for May, so should the market make a solid break of that 1612 area then it might be the beginning of something bigger but at this point I lean towards higher highs before a "top".

I ended up selling my VXX for a profit but ended up buying it back at a higher price when I saw 1626 break, so my cost has gone up a few cents which is still not too bad.. considering I will sell it at $19.75-20.00 :)

Main S&P 500 Trends

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

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