5th Down Day

We got the 5th straight down day today, a "record" bearish streak for the year. Looking at the waves, it looks like the market was done with just its micro W3 yesterday and today the market worked on its final 5th wave. There is however a potential Head and Shoulder (the IHS is obviously invalidated) that targets 1680 so we'll see if that is what the market wants to do. Also, we now have 2 consecutive closes under the Trend Average but the number is still going up so it might start turning down if we get something more decisive. The excuse for the "sell off" is debt ceiling issue, which includes Senator Ted Cruz (whom I am sure we will be hearing from for many years to come) speaking for 21 hours straight in the US Senate about de-funding Obamacare. What I want to know is if anyone was crazy enough to sit through the 21 hours to keep him company. The good thing is many people who need insurance will finally get it, the bad thing is we are probably headed towards much higher inflation in the not too distant future. Which in itself is not that bad if you have fixed interest debt but the very group of people that Obamacare will help, might end up suffering as well.

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.