The market went for the Trend Average as expected but prices closed below the TA in what seems like a completed bearish micro-count. I am assuming there will be a bounce if 2044 holds but ideally we should see more downside after a counter-rally. The big question is whether the bottom will be found around the 200 DMA level or the 50 DMA level. I was supposed to close my short position at EOD but had phone issues, so I am raising my stops to slightly profitable. I will go long when the 200 or the 50 hits IF there is confirmation of a change to the bullish side on the long term signal.
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 trend being challenged
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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