Market Update

The market seems to have put in a W4 today that could technically still have some more downside. But given the advance in the past couple of weeks, I doubt we'll see any substantial selling. So I am expecting the rally to resume soon and make a new highs before going into any meaningful correction. The market seems to be very focused on what Bernanke has to say more so than earnings, so as long as he is seen favoring more QE the markets will be happy.

I continue to stay on the sidelines on my short term trading as I want to see a lower risk/higher reward set up before taking any positions.

Main S&P 500 Trends*

Short Term Trend = Bullish

Medium Term Trend = Bullish

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.