Looks like a B wave…

0813spx

 

http://stockcharts.com/h-sc/ui?s=$SPX&p=D&yr=0&mn=6&dy=0&id=p83257770514&a=266398464

As we opined Friday, it appearss that power bar was the start of the b wave.  Today appears to be a confirmation of that.  It is not impossible that this is the start of the reaction to the downwave, but long practice has persuaded us that waiting for a test of the low is profitable.  Of course aggressive traders can buy this, but it might be  out and in or in and out, or some hop scotch.  Stop would be 50 cents under the low. We lifted part of our hedge.  The major part of our buying will happen as we see the a-b-g-z wave fulfill itself.  We will publish  extended comments next week as there are some technical anomalies here.

Trout are winning.

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