06/22/13: Wave C under way, looking for 1620s to short

Markets didn't quite reach my original target of 1660-1670.  1650s was where all the calculations had pinpointed to but I guess I was wrong in thinking that there would be a stab to get above these resistance levels.

Nevertheless, the market reacted in that zone and is now trading back under 1600 on the SPX.

I got stopped out after markets crossed under 1650 very quickly and switched to a short.  However, I only held that until 1620.  Pretty bad trading on my part since my plan was always that we were completing a wave B and then undergoing a brutal wave C.

Afterwards I started buying to play a bounce but the downdraft was more significant than I originally planned for.

Wave C has been brutal and now I am trying to play the bounce up to the gap zone of 1620s.  There is a legitimate change that the market has temporarily bottomed and is looking to retrace back up to 1620 this week.  On the 10 minute, there is a clear nested IHS built on oversold conditions.  Target is 1620 Monday.

Afterwards, this should reset the short term indicators to overbought but long term oversold.  I am planning to short at the 1620 level (if it can really get there) and ride this wave C down to 1540s.