Tuesday, September 17, 2013

Reversal day tomorrow?

The market has technically put in the final micro 5th wave in and there is a good chance we see a reversal day tomorrow. Looking at the count it seems like it is only the W3 wave ending so we should see a W4 correction. However, I've seen in the past how nested counts merge towards the end of the wave into one so there is also a chance all 5 Waves are in. The NASDAQ made a 13 year high and the SP500 is just a few points away so we'll see. If we hadd the length of W1 to W4 within the W3 structure, we get 1708 as a target so right at resistance.

I bought back VXX today in expectations of a reversal. The excuse to take profits is there (Taper) and I think it is reasonable to expect a test of the 50 dma on the pullback.

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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