Stock Market Update - May 9

The market came close to the 50 DMA before bouncing back and if the scenario I posted yesterday is correct then we should see another wave down to complete the zig zag or a bullish leg to 1880-85 that gets reversed again to test the 1859 level. The alternative is the low today was a W2 and we will see the beginning of a bullish W3 that will break 1885-90 for good on Monday or Tuesday. The market closed under the TA again but since the downside has been so limited the TA is still rising so there is no change in that signal yet.

I sold the longs I bought yesterday again toward the close of the day and but I am staying hedged unless I see the market trade above the Trend Average. These sideway moves are hard to nail so the best thing is to "buy insurance" through hedging. I think the market is approaching a significant turning point soon, as in a bearish turning point so whatever profits I make from the long side will be used to build a short position. The daily MACD is about to turn negative and any more failed attempts at taking out the all time high will give way to selling so I am getting ready.

Last but not least, I am announcing a new site which I am a partner of. This site has multiple analysts collaborating to come up with a consensus on where the market is going next. So it takes into account my trend analysis, Elliott Wave counts of larger degrees and Algorithms which are not published anywhere. The site is http://www.ewaveanalytics.com and I welcome any feedback or questions you might have on it.

Have a great weekend and Happy Mother's Day to all the trading moms!

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.