Market Update

The market gapped up at the open as I had been expecting/hoping but fell a little short of the micro 5 wave count target (1874) by putting in a high of 1872 before reversing and making a higher low at 1856. Going by the same calculations I've been using to project wave prices, if 1872 is W1 of a bullish count then we're looking at 1905 more or less as a target. However, I can also see a Head and Shoulders targeting 1816 and if the wave from 1872 to 1856 is a bearish W1 then I have the 50 Day Moving Average as target, which today is at 1832. As I said yesterday, this whole thing is looking like a sideways correction as there has been lack of bearish advances despite the many reasons for a more pronounced correction. But we'll have to see how the market reacts to the trendlines I drew on the chart, higher lows and continued all time high challenges will result in a strong rally eventually.

The market did as I expected yesterday but I lost on my pharma trade (23/28). The stock started the day well ahead but then it plunged below support for seemingly no reason. So I got stopped out at a loss and now I am reminded of why I should not trade individual stocks.. specially smaller ones. I am going to stick to volatility and my ETFs. I will just wait until I see a set up to take a new position.

Short Term Trend = Bearish Trend being challenged
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.