The market has been on an uptrend recently. It has been very nice to be a part of, but we never discriminate on up versus down moves. The objective is to latch onto a move when reward to risk is in our favor and ride it. However, it is easier being long stocks in an up market.
This week will be important for price direction. Will it continue upward or begin to break down is the question. Even though there are a few scenarios on the table the one overall theme of today is that price has a very high probability to move lower in the future.
However, that can be preceded by a future move up. That is why this week is interesting to me as it will foretell the likelihood of everything. At least in theory. Markets can do many things, one of which is to keep everyone guessing.
As traders all we can do is wait for the market to pick a direction and go with it.
S&P Elliott Wave Analysis
The probability states that this is a market rally inside of a larger correction. The correction will eventually push price to a new low. The current move is what I am watching intently here.
There are a few scenarios on the table, but that usually is the case. What we can do with that is to see which one the market is in favor of. Sometimes the market is fickle, and cannot decide, and other times it has a clear direction.
The market has a direction at the moment, and I want to see where it will head this week. That is why I keep multiple scenarios on the table most of the time, so I am always prepared for anything.
Trading is both an art and a science. We need to meld the two together in order to get a clear picture. It should be a fun week of trading I think.