The market rallied early morning to challenge its Friday's high but ended up reversing despite the rally attempt. I mentioned last week oil was going to keep rallying (closed over $40 today) and strength in energy shares have probably prevented a stronger sell off. However, I favor continued downside to test and most likely break last week's low at 2033.
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 = Bearish
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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