14 Aug 2015 - Wishy Washy..

We already know what happens to the indicators when there is volatility involved, so we just have to ride it out once more.  This week the break of the 200 day MA did not materialize into anything significant.  In fact, the bulls are still very much quite alive.  Our EW option is open to having the lows this week be a corrective low of sorts (a-b-c).

In a psychological stand point, dip buying has been the norm.  Since I cannot say for certain if the dip buyers are on the right side of the trade or not, we can only give them the benefit of the doubt.  Our market sentiment is still bearish therefore I urge caution on dip buying.  If the indicators stay bearish, chances are that a needed shift by dip buyers from complacent to defensive will be realized too late.

I know this is boring, when a blog like mine just keep repeating the same sentiment over and over again, but this is how we prepare ourselves mentally and financially.  In the end we become accustomed to crossing our T's and dotting our I's that it becomes second nature.  This is the only way to see if a trend has really changed.  Boring.. Simple.. Effective.

MT: DOWN
ST: UP
PA: UP