Yesterday's high was breached once Yellen spoke and the bearish set up from yesterday is now looking very questionable. If there is a higher high tomorrow then we could see the wave from today turn into a bullish W3. I started a short position before the run up in the morning with a stop at 2056 and unfortunately it looks like I will stop out. At least the downside is minimal given where I bought, this is why I like these clear resistance levels.
For an more elaborate analysis of the current wave please visit http://www.ewaveanalytics.com The current rally in equities and oil was called almost perfectly over a month ago on that site.
Short Term Trend = Bullish
Medium Term Trend = Bullish
Long Term Trend = Bearish trend being challenged
* 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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