Stocks' downtrend remains intact by the skin of their teeth. Today's rallys stopped short of making a new high above 1346.82 in the S&P. So the series of lower highs and lower lows is still in place, and therefore the downtrend remains in place. Shorting here against 1346.82 would be a good risk/reward trade for the bears. Although in the bigger picture, with no clear wave count in place, and certainly nothing impulsive looking, I think this downward action lately is all part of a correction that will result in a move to new highs on the year eventually. So if I were short, I'd play it tight here and only for the short term action. Longer term the market still seems bullish.
How to Put the Wave Principle to WorkIn the video below, EWI Senior Commodity Analyst Jeffrey Kennedy walks you through a basic checklist of how to put the Wave Principle to work. This clip was taken from The Wave Principle Applied webinar, originally recorded for Futures Junctures subscribers.
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