Market Update

The market put in a lower low at 1680 (which was the main projection from couple of days ago) to complete a 5 wave structure from 1698 and now we have to see if that was the A leg of an ongoing correction or a complete Minor W4 correction. We've seen these relatively fast corrections this year so the possibility is there that a new bullish wave is already taking place for a final 5th Minor wave. So for now, I am watching that rounded trendline to confirm a deeper correction or a breakout that will confirm a 5th wave.  I position traded VXX today as planned but still keeping it in case we are going to see a bigger sell off and maintaining all my long positions intact.

Also, I wanted to announce this new forum I created to better track market forecasts and share trading ideas. There is currently a poll I created to get an idea of general sentiment. I want to see if there is any correlation between sentiment and a particular wave so we can take it into account in the future. So please take a minute to register and vote.

Trending Waves Sentiment Poll

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.