The market put in lower lows as I expected last week but at the same time that level I first mentioned as important couple of weeks ago (1623-1626) held and the market was able to rally and invalidate the 5 wave count I was tracking that targeted 1590-1600 by going over 1640.05. So chances are what we saw was a zig zag with a potential for a double zz or even the beginning of a bullish leg. I want to see how the market reacts around the 1654-1662 area and if it's able regain the TA, so we'll just have to see how bullish is this leg before adding labels to it. The alternative to the corrective picture is a bearish triple nested 1-2 but given the fact the market rebounded and invalidated the 5 wave count, I give it small probability.
I ended up closing my VXX position at the bearish 5 wave count invalidation. I made good money but nothing near what I would have made if the market would have cooperated a little! I will probably load back up on VXX at resistance and unload or keep depending on the drop. Choppy markets are risky when holding volatility, so better be safe by staying on the sidelines and trading the higher reward/risk set ups.
Have a Great Weekend!
Main S&P 500 Trends
Short Term Trend = Bearish
Medium Term Trend = Bullish
Long Term Trend = Bullish
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