Wednesday, January 18, 2017
SPX and BKX Updates: Obama Signs Last-Minute Pardon for the Algos
My title has nothing to do with anything, I'm just tired of writing titles that basically say: "Still a Chop Zone, Huzzah!" Which is what has led to titles such as last week's: "How Much Wood Could a Woodchuck Chuck if a Woodchuck Could Chuck Norris?" And so on.
Last update expected the market would open higher and then reverse, and that's what happened. BKX in particular did so in a rather dramatic fashion, likely trapping many unsuspecting bulls into a loss:
SPX didn't reverse quite as suddenly and dramatically, but reverse it did:
Bigger picture, we're still stuck in the same spot we've been in since last year:
In conclusion, the market is keeping its near-term options open, but I'm still slightly leaning toward a continuation of the complex correction. Bigger picture, the trend remains up, and even if we get the more bearish (C) wave, I expect that will then be bought up to new highs. So, bottom line, no matter what happens from here, I am anticipating a continued rally, the only question is how we get there. Trade safe.
Posted by PretzelLogic at 4:25 AM