Monday, August 12, 2013

Market Update

The market tested the 1680-85 area again early today and bounced off right off. This level seems to be giving bears a challenge as there have been 6 relatively sharp bounces off this level. So while one could argue the case for an Head and Shoulders like formation, all these bounces have just been buying time and resetting oscillators. The close today was under the Trend Average again and it will turn red unless the market recaptures it so we'll see if the bullish side will be able to do that and trade above 1700 on the next bullish wave.

I didn't trade today as this is looking like a W4 and I rather just buy back what I sold last week when and if the 5th wave appears.

Main S&P 500 Trends*

Short Term Trend = Bullish trend being challenged
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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