Wednesday, April 23, 2014

Market Correction

We finally saw a small pullback today in the market but so far it's looking like a W4 correction, which implies another bullish wave is coming that could take out the all time high before making a significant pullback. The level to watch is the 1873 level, which served as resistance previously. If support doesn't hold then we should see the Trend Average tested. I forgot to mention yesterday that there is a bullish cross (and buy signal) on the daily MACD, which normally means the market is about to start a sustained rally.

I sold VXX today to position trade as I suspect there's another bullish wave coming. If that doesn't happen, I will be going long at the TA and take the loss on the VXX.

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.

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