Things are not clear right now. The market internal had stop going down and other indexes is showing positive bounce the last 4 trading days. Sustainable? I don't know. I was reading blogs from Elliott folks and they are looking for a pullback to around 1540 on SPX to complete the correction. The market internal I am looking at is showing sideways to up, but it could be zigzag sideways, a lot remains to be seen, and any rally could only be short duration. We will wait and see what happens next week.
The Syria news scares the market, but the energy sector seem to be responding positive maybe because it will benefit on higher crude price. A missile sent to Syria could send the SP500 to 1560 area. Market internal now resumed downward. My 2 cents.
Hers is the excerpt script from Tony Caldaro, Elliott wave blogger; ( he is good). Pay attention to the forthcoming correction. From Tony:
"Since the June-August uptrend was Int. wave v of Major wave 3. Major wave 3 completed at that high and a down trending Major wave 4 wave was underway. We expect Major 4 to correct about 10%, create a three Intermediate wave abc pattern, with the three Int. waves reaching approximately: 1630-1670-1540. Thus far the market has declined from SPX 1710 to 1639, and recently started to rally. This decline is most likely Int. wave A, and the rally Int. wave B. When this counter rally concludes a sharp Int. wave C decline should follow. After this correction concludes the market should rally to new highs in five Int. waves to complete Major wave 5 and Primary wave III. Medium term support is at the 1628 and 1614 pivots, with resistance at the 1680 and 1699 pivots."
It seem that a10% (SPX hitting 1540) is still coming before another rally towards the end of the Bull market cycle and the expected bear market this coming spring.
That's a lot to digest for a beginner like me. When you say hold that means if u are in you should consider staying with the current market conditions. Just trying to understand thing a little better. GLTA