Market Update

The market chose to put in one more bearish wave and with it another lower low so now I have the structure finished at 1560 (as a stand alone W3) and I am expecting a bounce to the 1597-1614 (the 50 DMA ideally) area before possibly seeing another leg down for another low. The combination of stimulus tapering and the artificial credit crunch has negatively affected sentiment and my guess it will take a few more weeks of this before the market finds a bottom. My position in China is officially underwater but I'll just be patient and wait it out, in the end it will all pass eventually.

Also, the intermediate might turn negative if the market does not recover strongly from here so that will be something to watch for. I bought some SSO today and position traded FXI.

Main S&P 500 Trends*

Short Term Trend = Bearish

Medium Term Trend = Neutral Leaning Bearish

Long Term Trend = Bullish 

* Trends are not trade signals. Trends are posted for situational awareness only and does not take into account wave counts, technical or fundamental conditions of the market. While mechanically trading the posted trends is feasible, keep in mind that these are lagging indicators and as such are prone to whipsaws and I personally do not use nor recommend them to initiate or close positions in the market without taking into consideration other factors.