Market Update

The market was not done going down yesterday but with today's leg testing the 50 Day Moving Average (the first test in 2 months) we should see the bounce I posted about yesterday materialize. The difference is now the potential micro W1 is longer so a bounce could challenge the 1880 area again. With earnings season in play, this is the bulls chance to recapture yesterday's lost Trend Avg. Also, we have to keep in mind that this recent sell off came from a no news environment. So things could turn around if companies manage to surprise to the upside, specially high tech.

I continue to hold to my XIV as there might be a gap up tomorrow or a substantially counter rally. Once those waves are in, I will get back into VXX but it will depend on where the market trades relative to the TA.

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.