On Tuesday the S&P 500 made a strong advance and went beyond the upper trend line of a bearish wedge that bears have been following and hoping for since mid-July. This move is still legitimate in Elliott Wave Theory and is called a throwover. Any further rise though would call the pattern into question or negate it entirely.
As usual recently I have been rather confused about market direction as the NDX has chopped up and down in recent days. My models though also put Wednesday as a critical day - either up or down from here.
Here is a very interesting discussion of whether we have already seen the lows for the four year cycle.
2 comments:
I'm semi bullish in tech, health care, and international with a 9% cash position. We look bullish short term so don't be a bear now.... Can you plsy your position with stops? Or write a feww calls?
Of course I think the opposite. The great thing about short-term trading though is that it doesn't need to take a strong positions about where the market is going and when the trend changes it changes direction. There is a daily stop as part of the model. But as soon as the stochastic starts moving in the opposite direction or is predicted to do so you switch position short to long or the reverse.
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