The market sold off today and tested the 200 DMA again as I had been expecting. However, the 200 DMA continues to hold and I see a potential bottoming pattern. Unless selling continues next week and breaks the recent low at 2553, the chart pattern favors upside into the 2700's. So I'll probably deploy some cash early next week for a short-term trade if the bottoming pattern continues. However, if 2553 and 2532 break then it will be downhill. The Trend Average continues to be bearish and a death cross seems likely sooner than later.
Have a great weekend!
Short Term Trend = Bearish
Medium Term Trend = Bullish trend being challenged
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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