9/17/2009 - Market Update

The S&P 500 index has decisively broken out of the bearish rising wedge to the upside, and has now cleared all major resistances. There is very little reason to be short in the market to this point, and I restate my believe that the market will continue higher with minor pullbacks. Another reason why I believe it's headed higher is because certain sectors such as shipping and airlines are just starting their run.















I've seen people claiming the market is overbought and how the P3 EW is right around the corner. Folks, there's nothing wrong with making a prediction, but if you're constantly wishing for an event while the opposite is happening, it means you're not trading on the right side. Predicting the market is a dangerous game, and that's not what trading is all about. It's about being on the same side as the market (following the trend), and changing sides once the trend reverses.