Trend change

Obviously, the trend has changed from up to down. However we are not sure if wave 2 is definitely over . The Dow and the S&P indexes have certainly crashed through the 20 day moving averages. The next support that must be pierced is the 50 day moving average. The Dow 50 day is sitting at 10967 and the S&P 50 day average is at 1165. Both of them are within striking distance within the next couple of days. Is it a sure thing? No! There is an alternative view that the markets still must complete wave 2 or B however which way you label the move. The strategy, if you think as I do, is to be in cash or be short the indexes. Be wary as the markets approach the 50 ma, as this may cause a reversal. Be on the right side of the market. All longs should have been closed out.