The stock market remains in a downtrend. We have recently completed wave 2...we have started wave 3. Keep in mind that the third wave is longer than wave 1. It is also a violent wave. Most money is made trading the third wave. The third wave will have 5 waves. The problem is always the same: "where are we?" Check the SP chart which indicates a strong downtrend confirmed by RS and MACD.
Initial resistance will be at 1040. We can expect a bounce at 1040. but the trend will eventually continue down past 1040. If history repeats, SP will go below 600, the previous low of wave 1.
remember there is always an alternate, so be on the lookout for a move that would invalidate the above scenario.
my position at this point is fully "short."
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