The market has rallied back above the Trend Average and this correction is starting to look like sideways consolidation as oscillators have been resetting. Still, lower lows would be ideal as it would create a good base for another rally to take place. But as I have been mentioning, strength in oil prevents equities from selling off substantially and oil's current momentum serves as a perfect excuse for a shallow pullback in stocks. I was hoping to see the 50 DMA (1980) tested but if this continues, the 200 DMA (2013) will be a more realistic target. I am glad I closed all my shorts and now I am just hoping to get in long on a good set up. I should add that most wave counters are expecting 1810 to be tested but not me as I see the long term trend with a good chance of turning bullish in the next 2-3 weeks.
For an more detailed analysis of the current wave please visit http://www.ewaveanalytics.com.
Short Term Trend = Bearish 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.
No comments:
Post a Comment