The market bounced back as expected and we could see the 2072-2076 area challenged tomorrow. The assumption is the market will not be able to get past resistance and head back down to challenge yesterday's low. However, if the rally takes prices past 2076 then we could see the uptrend continue for a while more. The market is is overbought at this point but oil is rallying again after a 50 DMA test, so equities could benefit from strength in the energy sector.
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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