Close above TA

Markets managed to stage another strong bounce and now we have a higher lows and higher highs but most importantly a solid close above the Trend Average. One could also argue for a double bottom formation but only if the current wave is a bullish W3, if that is what the market has in mind then a complete 5 wave count would target 1687. If the 5 count fails then I would expect a trading range between 1626 and 1661, so we need to see one or two more sessions before getting a better picture of how September might trade. The market has already corrected more than enough in time since the 1709 high and oscillators have been reset to the point where we could see a big rally. But as long as the Syria issue remains in the background, I would assume that would keep a lid on the market? economic news around the world are on the positive side so in the longer term I am expecting higher highs.

I am still in cash and waiting for the right moment.. like a ball player waiting for the right pitch.

Main S&P 500 Trends*

Short Term Trend = Bearish trend being challenged

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.