FYI- I will try to post some updated charts and notes on the recently triggered (active) trades later today or tonight. Basically, price action in the market continues to be bullish and accordingly, the long-side trades have performed much better than the short-side trades. Some of the short-trades have even moved back above their pattern breakdown levels and may or may not have exceeded your own personal stop parameters or the initial stops that I may have listed.
Bottom line is this: Both the near-term and intermediate term trends in the market remain firmly up while the long-term (primary trend) still remains down. I will try to update some bigger picture charts this week illustrating that case, as we are getting closer to the point where the last few months could be considered just a correction in a longer term bull market that began in March 2009. However, for the time being, I favor the interpretation that we are most likely in the first primary counter-wave of a new bear market that began on May 2, 2010. Again, I will try to illustrate this case at the first chance I get.
Currently, the S&P500 has been clearing a key resistance level both today and yesterday but on below average volume, which is not ideal for a breakout of such an important level. Price action always comes first, so respect the breakout for what it is but consider keeping raising stops on existing long positions to protect profits and minimize the risk of being caught in a sudden reversal since this breakout is suspect at this point. Updated market charts in a few.
BTW- Yesterday’s potentially bearish doji candlestick on the QQQ was not confirmed today. As mentioned before, we would have required a bearish candlestick today to signal a likely reversal. With just over 3 hours to go, only a big sell-off into the close today, producing a bearish engulfing candlestick could do that now. Therefore, the uptrend continues to remain intact for now.