Tuesday, February 18, 2014

Market Top?

The market put in a marginally new high today thanks mainly to the NASDAQ, however, I think the market is close to topping. Technically speaking there could be a triangle that could break out and challenge the all time high at 1850 but it will have to first break out of the 1843 resistance level. I can't imagine people buying at these levels without a good correction, so I am still looking for a proper Fib retracement and a test of the Trend Avg/50 DMA. I am maintaining my VXX and will be back to my long position in the next few sessions. Also, unless there is some bearish miracle tomorrow, the Intermediate Trend should be turning bullish tomorrow so that's just another indication that we will most likely see an all time high fairly soon (hopefully after a correction so I can sell my VXX and get back long!).

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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