Thursday, October 3, 2013

Expanded Flat?

The market seems like it completed its impulse down by putting a low of 1670, just a bit short of the Head and Shoulders projection but in the target range of the bearish 5 wave micro count I pointed out yesterday. At one point it looked like there would be more downside to come but the bounce went a few points into micro W1 territory and invalidating a bigger 5 wave count, so technically we should see a counter rally as soon as tomorrow. So far it looks like the 1696 top was an A and the low today was a B of an expanded flat. Also, the 50 dma finally broke so bulls better recapture it soon or risk further downside.

I ended up buying GXC, also a China ETF that has more tech in it. I was also thinking of buying RSX (Russia) but I'll wait and see how this correction evolves.

Short Term Trend = Bearish
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. 

No comments:

Post a Comment