22 Aug 2013

A few days ago China had its own Fat Finger issues. Then GS lost a "Few" Million from their own errors.  Today GS lost a few more and the Nasdaq halted trade due to "Issues".  Seems there are a lot of issues piling up and its starting to smell.  On a daily chart though an EW pattern looks like a 5 wave move down.  Our short-term chart have moved to the upside so no trade should be initiated until both trends are in sync.  This morning I mentioned the ES moving up to overbought and ended the day still at overbought.  What happened throughout the day sans Nasdaq halt was the SPX intra-day managing to push up to the overbought levels.  I do believe that the EW pattern has not finished forming the 5 waves required to complete wave 1 or A.  But what I believe doesn't matter but the indicators itself.  Therefore we should look to see if tomorrow will cause the overbought levels to push the prices down and make a new monthly low.  This would then suggest we are still on the right track.

Main-Trend: DOWN
Short-Term: UP