Per my post a few days ago:
"I am assume the low at 2593 will be tested but ideally we should see the 200 DMA tested which at 2537. "
The market followed the count posted and bottomed at 2532 before mounting a strong counter-rally. I assume the bounce will continue next week until we see a test of the Trend Average. If bulls are able to re-capture the TA, then maybe this is one of those one-wave corrections which we have seen several over the years. But if prices are not able to recapture the TA, then the market is in trouble and the 200 DMA will be re-visited again.This sell-off stands out as the one of the fastest in history but we could equally see one of the fastest rises in history if this ends up being a simple correction. So the best thing is to prepare for whatever is coming. I bought longs right around the 200 DMA and raised my stops to break even, I'll be ready to sell at the TA if I see any signs of hesitation. A lot of people are still scratching their heads over this sell-off but none of this was really a surprise by looking at the wave count. Actually, this sell-off has been predictable since it started last week.
Have a great weekend!
Short Term Trend = Bearish
Medium Term Trend = Bullish
Long Term Trend = Bullish
* 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
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