The market rallied as I had expected but the reversal at resistance raises some doubts. So I am posting the 2 hour chart to "zoom out" and look at how I am counting this at the intermediate time frame. Basically, There is a proportionate 5 wave impulse from the 1814 low after an ABC correction. We got another ABC at a lower degree and today we were supposed to see a W1. However, today's wave failed to meet my minimum standard as far as wave structure goes in relation to a W1. So I am inclined to think we saw another zig zag for an X wave with another ABC move coming. And since the high today was very close to the 1891 high from a few days ago, another proportionate ABC move should put the market in the 1850-59 area. I will be looking out for a 50 DMA bounce if the bearish wave from today continues early morning, with that being the A wave. If the marker bounces towards 1880 with no further downside then that should be the B, with today's low as the A.
I sold the longs I had from yesterday at the 1885 resistance so that turned out well. And after seeing the market turn back and close slightly under the TA, I bought back a small long position and VXX to hedge it. I will go all long again when key support gets tested again or sell the long position I bought today at 1880 more or less.
Short Term Trend = Bullish Trend Being Challenged
Medium Term Trend = Bullish
Long Term Trend = Bullish
No comments:
Post a Comment