This may not be the best time to be long the market. On the attached weekly chart of the S&P, there is a bearish Wolfe wave (Lines not drawn). The wave has some "bumps" between
the 4 and 5 points indicating some instability. The bumps may also spawn some bullish contrary waves if the price gets to those levels. (See lesson on bumps.) Nevertheless, the overall pattern is quite bearish.
For the day trader, large weekly charts are not that important as there will surely be both bullish and bearish waves, on shorter time frames, for trading opportunities. If bullish waves do develop around bump lines, be sure to review the lesson on "pressure points" as soon as a 3 point forms, so that you will be able to approximate the 4 point.
