Stock Market Update - June 5

The market rallied past 1930 and it reached its original Ascending Triangle target as well as the 1939 "ideal" level to call the structure from 1862 complete. I do see a potential for 1953 going by the micro count but I think the market is ready for a pullback. It will be interesting to see if 1902 holds on the correction, if that level fails then the 50 DMA will be again tested and we will see if this market intends to go for 2000 this summer. The European Central Bank's negative interest policy favors assets in general, so maybe this will be the excuse for a crazy summer rally.

I bought back the rest of my short position I sold when 1902 first broke so now I am back to all short in my short term trading account.

For further analysis on the NASDAQ, DJI, RUT, Gold, Silver and Oil please visit http://www.ewaveanalytics.com

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.