Market Update

The market has been correcting sideways since putting in an all time high but since that impulse (to 1858) was basically 3 waves it makes the chart look somewhat odd since there is an obvious triangle taking shape as well as a Head and Shoulders targeting 1820. Usually, we get triangles and H&S formations after a stronger W3 but this one comes from what looks like an ABC as opposed to a 5 wave count. And who know, perhaps we will just see 3 waves as an impulse to another high and then see a bigger correction? this obviously goes against orthodox Elliott Wave rules but that's what's in front of us. It's rare to see something like this so this is something we can learn from. With that said, a nested 1-2 is still a possibility, it just looks off as far as form.

I ended selling the two long positions profitably in the morning (18/21) and I am waiting for some clarity before committing again. VXX btw has been rising (ironically from the minute I sold it when an all time high was made) and it usually does that when there is some sort of top, so we'll see how this works out as a to predictor.

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.