Wednesday, May 13, 2015

INDU and SPX: Today's Title is Stuck in the Trading Range, Check Back Later

This market long ago abandoned all but the most die-hard traders, so congratulations if you're still paying attention to it.  This has been a short-term traders' market for several months now, and not really a market that would interest folks who have other things to do.  Eventually, this trading range will end, and we'll go back to some sort of trending market that lends itself better to swing trades -- but for now, it is what it is. 

As of Tuesday's close, there's been no real change to the prior update.  Monday's session saw a deep retrace -- which (hopefully) made the only count I posted into a winner for anyone who played along and stayed nimble.

Near-term, INDU has the appearance of an ending diagonal, but I'm not 100% certain it's a true ending diagonal.  It may instead be a simple bearish rising wedge, which leads to a fairly deep retrace prior to another leg up:

There's really not much to add beyond the chart above -- but below is SPX's updated chart, with a few additional notes:

In conclusion, Monday's wave count tracked well enough to make for a winning trade, and there's been no new or revealing information from the market since then.  So, until we have a new key level break, there's not much to do but watch and wait from here.  Trade safe.

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