Wednesday, June 25, 2014

Stock Market Update - June 25

The SP500 bounced as expected after completing a bearish 5 wave micro count but it fell a bit short of its target. Still, this bearish wave could be the start of something bigger but obviously it needs to be confirmed with the next bearish waves and a the loss of the Trend Average. For now, I'd like to see how the next bearish wave handles the 1941 support area. The market could continue to bounce tomorrow but the next bearish wave should start soon and give us an idea of whether it is a C or a W3.

The revised GDP growth numbers were very bad at -2.9% for the first Quarter. The economy would have to grow 3% this Quarter just to bring economic growth to 0%. The economy will need to grow 4% in 3rd and 4th Q to meet the general revised target of 2% (it was originally 3% when we started the year), which is going to be hard to achieve. The market might not care now, but if sentiment turns, growth numbers are going to be a major concern.

For further analysis on the NASDAQ, DJI, RUT, Gold, Silver and Oil please visit

Short Term Trend = Bullish
Medium Term Trend = Bullish
Long Term Trend = Bullish

* Trends are not trade signals. Trends are posted for situational awareness only and does not take into account wave counts, technical or fundamental conditions of the market. While mechanically trading the posted trends is feasible, keep in mind that these are lagging indicators and as such are prone to whipsaws and I personally do not use nor recommend them to initiate or close positions in the market without taking into consideration other factors.

Elliott Wave Analytics

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