Wednesday, August 28, 2013

New 5 wave count or ABC

The market bounced as expected and alleviated yesterday's oversold condition and I see on the micro-count a potential for a new 5 wave count targeting the  50 day ma. But obviously if the bearish wave is not done then we could just get an ABC move and the see the 1626 level tested. Also, since it's been now almost a month since the 1709 top was put in, I am inclined to label this wave a W2 and for a better perspective I posted a longer term chart today. Notice how the RSI and the MACD are already at similar levels as when the market found a bottom at 1560. This doesn't mean the market will start rallying right away but the base to launch a similar rally (1560-1709) is in place. Perhaps the Syria situation will be the catalyst of the market's next big move and it looks like Obama is taking a page from Dubya's book and will launch an unilateral attack.. not a smart move if you ask me. In times like this, Ron Paul makes a lot of sense.

I didn't trade today as I am waiting for Google to reach $900! lol.

Main S&P 500 Trends*

Short Term Trend = Bearish
Medium Term Trend = 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.

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