Monday, September 9, 2013

Short term trend has turned bullish

The market was able to overcome the 50 day ma and ended up closing strong. Also, there daily MACD has a confirmed bullish cross and with this we now have higher probabilities a sustainable rally might be in the works. The concern of Fed tapering QE3 has been somewhat relieved with the expectation of a "light" tapering instead of an abrupt pull out. Also, the issue with Syria might be at a turning point now that Russia has proposed a reasonable plan. If the Syrian government accepts the Russian proposal of handling over control of its chemical weapons to the UN or some sort of international body, chances are the markets will fly past its all time high. Putin will end up looking like a man of peace and Obama like a warmonger. I guess they gave Obama the Nobel Peace prize (who in the world thought of that one is beyond me) a few years too With that said, this could still be a B that is topping but I for one won't be shorting anytime soon.

Main S&P 500 Trends*

Short Term Trend = Bullish
Medium Term Trend = Bearish trend being challenged
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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