While market has been going sideways for the past few days, small caps are still lagging. But this sideways movement has created significant excitement among short sellers (once again). Excitement among short sellers is typically good for bulls. Following chart shows consolidation pattern in SP500. This pattern is also present in DJIA and Nasdaq.
On the other hand, it seems like small caps have completed a 3-wave decline pattern. Which can also be bullish for the market. Furthermore, there have been 4-5 buy signals over the past few days.
Now, readers know about the IPM bottom window. One should trade according to the turn window and their trigger. Please note that in an uptrend, market could make a higher low within turn window.
According to IPM trade matrix a 50% long signal was triggered on the close yesterday. This also the reason why IPM Trade Matrix does not go short in an uptrend. As mentioned previously, IPM trade matrix information was supposed to be shared only in the first half of 2014. A method for continuous sharing of this information will be devised before continuing publication of IPM Trade Matrix information.