31 May 2013

Markets worked its way in our favour.  Our target of 1630 was only .82 away on close.  We will take it anyway we can.  There is much that happened today and it was a big one to say the least.  Not only did we accelerate down, we also saw a reversal candle printed on a monthly level.  Our weekly bar closed on consecutive red bars.  Last time that happened... Nov 2012.  Our break down of the triangular pattern was the winner today and could possibly set up for weeks to months of down trend.

We must remember to stay with our trend indicator and as always has been pretty good at calling it.  We would also need for the markets to come out of overbought in next few weeks and months.  This should be a good indication that the trend has changed long term.

Mid-Term: DOWN
Short-Term: DOWN

We still cant rule out a 4th wave scenario, but if it happens the acceleration to the upside should not change the longer term outlook now that we have a monthly bearish print.  Again it will depend on the monthly to exit the overbought situation.

Reversal: