Elliott Wave 5.0 "Reboot"

Friday, January 29, 2016

E-Mini SP500 Intraday Review: Bull Trap?

On the surface the markets are going up, and many may be fooled into taking long positions or their short stops are all getting nailed. We can see several spikes to the upside with overlapping waves. The pattern that any market makes when going up is far more important to pay attention to.

When any market goes up and is choppy with radical swings, then this shows us that the market is fighting against the bigger trend, which I think is still down.  Many jump on the bandwagon in hopes of not missing the next big bull market, but in a fake run they would be buying high as they become the greatest fool. 

This rally should come to an end as the month end trading is also here today!  Next Friday will be the jobs report and this can make the markets go wild as it can swing massively one way and then soar the other way with nobody knowing what the trend is.