We have decided that we will report out thoughts on market action distinctly for short term (we study the daily charts and look for confirmation on the hourly charts) and medium term time frames (we look at weekly and monthly charts - see June 28 report on the status of these). Hence, starting today, we will express these thoughts separately.
Medium Term: Until proven otherwise, we advocate that the market experienced a significant top on May 22 at 1,687 on the $SPX. We believe that the market is unfolding downwards since then, exerting several upwards retracements and concurrently displaying increased volatility (compared to the period from April 19 - to - May 22). Therefore, waves up for us are corrective retracements, until proven otherwise.
Short Term: We are in an uptrend since 1,560 of June 24, 2013. We interpret market action as a wave "a" up (1,560-1,626), wave "b" (1,626-1,604) down, and now wave "c" (started on July 3). Wave "a" was 60 or so points on the $SPX and consequently we anticipate a 60 point move upwards from 1,604, which we anticipate to bring the market to our target of 1,660's. However, this wave can fail at any time now.
Depending on each person's personality, some follow short term and others follow medium trend signals.
DISCLAIMER This blog shall not be perceived as investment advice. This is a personal diary of our thoughts on the markets. Consult a professional broker or adviser before investing. Any opinions, news, research, analyses, prices, or other information contained on this blog are shared as personal thoughts and provided as general commentary only
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