Tuesday, July 22, 2014

Elliott Wave Stock Market Update - July 22

Another all time high was reached today by the SP500 and the Trend Average has turned green again. However, I still see the possibility of the second shoulder at the 1965 level before any meaningful rally. The waves in the last few weeks have been choppy while the daily MACD has been resetting, which normally points to a consolidation period. One could argue for a flat correction or a sideways correction at this point, so a break out of the trading range puts the market easily over the 2010 level. Even if the market breaks some of its most recent support levels, it would still be bullish given the fact that bears have not really been able to make a dent in this rally. I can't really imagine the market continuing to rally until December but as I've always said, the trend is your friend. I am in cash on my trading account as the market didn't test the 1965 level so my game plan is the same as yesterday.

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.

Elliott Wave Analytics

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