Inverse Head & Shoulders targets 1672

The market seems to have found a bottom today to start its counter rally and so far it looks like there is a W1 wave finished on the micro count. Also, there is an Inverse Head and Shoulders pattern that targets 1672 which is about the area the Trend Average will be tomorrow or Thursday. What happens after the test of the TA should decide the rest of the month as failure to recapture will mean lower lows ahead. As it is the market has an ABC finished and it would be ideal for a W5 to start here. But that is all up in the air until the short term trend signal confirms it. Also, one possible scenario that might be in the works is a bigger IHS with 1670-80 as the first shoulder so I will be on the look out for that one.

I was tempted to trade the micro count but I am just going to stay put and wait it out. Maybe when we get to the target range I will be able to buy back the VXX I sold last week at a better price? we'll see.. lastly, I wanted to clarify something about my post yesterday on the ads on the site. I realized most people don't know that most of the ads you see on the web are served on the Google adsense platform, in fact I wouldn't be surprised if 80-90% of web ads are run by Google. So when I said I made more money trading Google than ads, I meant their (Google) ads. Google's dominance on the web is what will make this company eventually more valuable than Apple imo. Unlike the MSFT vs APPL rivalry or INTC vs AMD, Google has no competitor.

Main S&P 500 Trends*

Short Term Trend = Bearish

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.