The market went into a correction today but it still leaves open the door to new highs as the low did not even test the Trend Average. I think there are enough waves for a stronger pullback but given current sentiment, bulls might be able to mount an ATH challenge if they can get past 2116. I closed my shorts towards the end of the day and will buy back the position as it gets closer to 2111. Last but not least, a golden cross is imminent and that event normally favors long term upside. Obviously, as any lagging indicator, the golden cross does get whipsawed (like it did in December) but historically speaking probability favors the bullish side substantially.
For an more detailed analysis of the current wave please visit http://www.ewaveanalytics.com.
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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