I'm looking for Minor wave 5 to get underway to continue shorting with the larger trend. Today's reversal is a good initial sign that perhaps Minor wave 5 has started. But an S&P key level needs to be broken first.
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Today the market put in a nice reversal that sets up the possibility Minor wave 5 is now underway. The Dow, S&P and Nasdaq 100 all made new highs today while the Composite lagged. Tech is also leading the charge lower right now which shows that some risk aversion has returned. Also, notice that the S&P's new high was not confirmed by the RSI. Overall, the new highs made today were very weak and the reversal that just happened make it ripe for Minor wave 5 to get underway. But I don't want to jump the gun early, I still want to see if the S&P cash index breaks to a new low beneath 1180.53, then I think it's a good risk/reward trade to be short here with a stop just above today's high.
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PLEASE NOTE: THIS IS JUST AN ANALYSIS BLOG AND IN NO WAY GUARANTEES OR IMPLIES ANY PROFIT OR GAIN. THE DATA HERE IS MERELY AN EXPRESSED OPINION. TRADE AT YOUR OWN RISK.
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