The market plunged today almost 10% in what was basically panic selling. Trump's attempt at calming people and the markets didn't go too well, specially when he banned travel to and from Europe but not UK or other parts of the world?! His ineptitude is shining bright and only the blind can not see. I mentioned yesterday that 2600 was key monthly support and now that the level has been breached we are looking at 2346 as the next stop. If that support doesn't hold then prices might go down to as low as 1850. Assuming what we are seeing now is a W3, a 5 wave down structure would target 2000. I assume there will be a strong bounce from the bottom but it's not a given. We might just see a sideways move before another bearish leg since the REALLY bad news are barely just now making headlines. The lack of testing I mentioned yesterday will be exposed in a matter of weeks and only then will we know what we are truly dealing with. I started transferring funds to my trading account but won't make purchases yet unless I see something ridiculous like 1500. This sell-off has gotten ahead of itself but a true bottom will probably take some time.
Short Term Trend = Bearish
Medium Term Trend = Bullish trend being challenged
Long Term Trend = Bullish 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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