Friday, June 7, 2013

Corrective or Impulsive Rally?




















The strong rally I posted about couple of days ago is here and now that the market has put in a strong wave, the main question is whether this is W1 of a 5 wave count or an ABC. Barring any surprises, an ABC move should take the market to the 1662-1674 level I mentioned couple of days ago and maybe sell off again 90 points? However, if this is a 5 wave count then I expect the all time high to be taken out and possibly end around 1700-1710 more or less. The market closed above the Trend Average and one more close above it will most likely turn it bullish again. So the TA might get whipsawed but when everything is settled, we'll have a good idea of where the market is headed next. But do keep in mind all those quick and simple corrections we've seen this year, this one might turn out to be just a bigger version.

Now I've got to go and talk to my ex since there was a mass shooting couple of hours ago at the library where she was just yesterday. Which happens to be the library at my old school and a place where I spent countless hours in my college days.. I hope nobody was critically injured and I wish there was a way to stop all these idiots from hurting innocent people.


Main S&P 500 Trends

Short Term Trend = Bearish Trend Being Challenged
Medium Term Trend = Bullish
Long Term Trend = Bullish 

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