SnP500 trashed around near the bottom before finally rallying. Compq 200ma proved to be a strong magnet that prevented SnP500 from rallying straight off it's A-B-C bottom run (or the Bull Flag Support):
>> SnP500 TA Bull Flag: img15.imagefra.me/i84o/jquint84/141u_dc0...
>> Compq Daily Chart TA: img15.imagefra.me/i34o/jquint84/141u_bf6...
For the purist EWA this could be an acceptable wavecount albeit with minor deviation from the ideal EW Rules:
>> SnP500 Intraday EWA: img15.imagefra.me/i34o/jquint84/141u_700...
For the EW'ers; SnP500 remains a viable short-term to medium-term trade for the bulls if SnP500 actually performed a Flat Pattern formation from the Jan 02, 2014 lower high top for 3+ months making this the second consolidation range since the late May to early Oct 2013 consolidation range that lasted 4+ months.
For the weekly chart EWA; see the previous instablog.
There's nothing new of importance to analyze at the moment for the medium-term and as such the bullish Swing Traders and/or Medium-term Trend Traders still have the upper hand. But with the divergence sell signals on the daily, weekly, and monthly charts triggering, as illustrated last April 13; medium-term trend traders should take precautionary actions by taking some profits off the table. During a bull run, it is far harder to find topping patterns - than bottoming patterns - thus CAUTION is better trading strategy at this stage.
For Daytraders who bought at or near the April 13 bottom; taking some profits off the table is almost always an SOP. Ideally, SnP500 and/or Compq should form a 1-2-3-4-5 rally on the daily chart before finally closing the daytrade. For now CAUTION is the better trading strategy.
For the moment: Timing is everything specially with SnP500 forming a very complex rally that may prove far beyond my capability to analyze correctly. With correct timing, half the battle is already won. Use trailing stops to protect paper profits and let the markets decide the next move.
For me: I bought some NQ and SSO when Compq went for a test of it's 200ma support in April 15 - in addition to the YM buys of April 13. For now, I would be selling some YM and/or SSO as SnP500 approaches it's intraday target. Since there is no high confidence analysis on the intraday, daily, and weekly charts; I would rather trail my long positions and let the markets decide either to rally or to reverse the trend.
* Also bought some AAPL as it approached it's 200ma support per my Comments the previous week(s) and some other tech stocks such as GOGO for swing trades and/or medium-term trades. I sold some AAPL last Monday as a precautionary move as it made a test of the 50ma resistance. Now using trailing stops on the rest. Will try to add some GOGO medium-term trade if and when it makes a pullback toward the A-wave support as illustrated on my latest comment.