Market Update

The market did not follow through with yesterday's selling in the cash market today. Instead, there was relatively more substantial downside in after hours trading prior to the China and European PMI release. So it seems likely the bottom is in for the wave from 1709 and a pullback tomorrow sets up a potential IHS pattern again. This coming counter rally could be a B wave or the start of a 5th wave since 1626 was not breached, so we'll keep an eye on how the market deals with the 1680-85 previous support which is now resistance. I know some are questioning whether the rally is over but as I have been saying for for quite sometime, as long as the economy shows no sign of recession the markets will continue to go up. To be specific, the market should go up in tangent with the rate of GDP growth + Inflation more or less.

I bought back VXX around 1656 today so I hope we'll get the retrace for the right shoulder of the IHS tomorrow.

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.