Tuesday, April 29, 2014

Stock Market Update

The market has gone up as expected but still needs to break the 1884 resistance level for a break out and a possible challenge to an all time high. There are several bullish patterns in place and trends are green so we'll see if the market confirms as soon as tomorrow. Also, I wanted to talk about the NASDAQ since there is a bearish Head and Shoulder's formation there. The reason I don't put too much emphasis on the NASDAQ is because it is dominated by tech and biotech, which is just a part of the overall market. Just as I don't put as much emphasis on the DJI or Transports which made a post financial crisis high today. I try to get a balanced view and that is why I track the SP500 for general market sentiment.

I sold half the longs I picked up at 1860 to position trade in case there is a deeper micro w2/right shoulder of the smaller ISH. The Feds and the data coming in the next few sessions should be able to move the markets decisively.

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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