Tuesday, April 22, 2014

Trends are back to bullish

The market managed to break the 1872 resistance level and as expected ended up challenging the 1883 level. At this point the all time high is only less than 1% away so if 1883 breaks decisively we are looking at a new all time high. However, I am still expecting a correction for the right shoulder of the IHS or basically a W2 so we'll see if it will come at all. So far the wave from the bottom has been very impulsive and it could well turn out to be one of those stand alone W3s we've seen a few times before. The best hope for bears given the wave structure is a megaphone top with the entire structure from 1737 topping after one more all time high. Best case for bulls is this is W1 of a 5 wave count which projects to SP 2000 in the next few weeks. A middle of the road projection would be an Rising Wedge that will top in the 1900's.

I am holding a VXX bag at this point so still hoping to get rid of it on a good pullback.

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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