Friday, July 25, 2014

Elliott Wave Stock Market Update - July 25

The bullish micro 5 count failed today as the correction retreated below 1979.91, so it implies a good possibility of lower lows if the all time high does not get breached. One pattern I'd like to see is a Head and Shoulder's with 1955 being the left neckline (if 1991>1974 was W1, then I expect 1950-1955 on a bearish 5 count). If we see further selling, the market might find a bottom at that level and rally to form a right shoulder. This pattern would provide good short term opportunities for longs and shorts, so I'll be keeping an eye on it.  Also, I saw Goldman Sachs issued a warning of a temporary sell off in stocks in the next 3 months due to the what has been happening in the bond market. The market hasn't had two consecutive bearish months in 2 years, and maybe we'll see one before the summer is over. I am holding on to Gold and hoping to see a follow thru rally next week.

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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