Friday, August 2, 2013

Stronger correction next week?

The market put in a W4 as expected today and rallied past yesterday high which technically satisfies a 5 wave count from 1682. The ideal projection for the end of this 5 wave count would be 1714-18 (re-calculated it today) so this last wave has room to go but with 1709 meeting 1.618 of W1 (1560-1626), the market is ready to go into a W4 correction that could end up testing the 50 day ma as soon as next week. This has been quite a rally that started with no news so I think it's about time for the market to take a break.

I ended up selling my SH position for a small profit today and bought back at 1709 at the end of the day. My VXX is horrible but I got the stomach for it, maybe it will start go up in the next week or two.

Have a Great Weekend!

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.

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