Counter Rally to Trend Average

The market put in a lower low today which I have now labeled an extended 5th and the bounce so far could be labeled an W1-2 or an A-B, which calls for another bullish wave as soon as tomorrow to target the Trend Avg which is now at 1794. There is also the Inverse Head and Shoulders set up that targets 1791 and once the market gets there we should not if this will end up being a complex correction with another  zig zag to come or if it's a W2 of a W3 with the bulk of the selling about to come. Whatever the case, I'll get a better idea by seeing on the market deals with the TA. Last but not least, the lower low today could be the head of an IHS and that would call for a rally all the way up to 1810 again so don't be caught by surprise if that happens.

I couldn't resist the lower low today so I ended up buying XIV to complement my previously long position. Once we get to resistance, I'll be switching sides again. Volatility is going to pay for the fence I am currently building in front of my house :)

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.