Tuesday, May 6, 2014

Closer Under Trend Average

The market failed to gather strength to rally as I had been expecting and instead it ended testing yesterday's low. It remains to be seen if the market will test the 50 DMA at 1864 or even the 1859 support level, however the market remains in a bullish set up as long as 1850.61 holds as a low despite the close under the Trend Average today. I am expecting a stronger bounce tomorrow but if that fails then it will be time to get defensive, specially at a bearish turn of the Short Term Trend.

I ended position trading my longs and I sold my hedge at the end of the day. Hopefully, we'll get a better picture by the end of the current wave.

Short Term Trend = Bullish 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.

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