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.

No comments:

Post a Comment