Selling has continued as expected and support was broken so the bias is now clearly bearish. My assumption is that prices will go into the 2600's and 2603 or 2681 holds will give us a clue for the next few months. A correction that ends up bottoming at 2603 or 2681 would create an IHS pattern that targets 3250. But given the fact this bull market is now 10 years hold (March 9, 2009) it wouldn't be a surprised if we will see a much deeper correction and eventually a real bear market. I will be going long using the support levels I mentioned but if they break then I will continue to wait for good entry levels.
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Short Term Trend = Bullish 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
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