Friday, August 1, 2014

Elliott Wave Stock Market Update - August 01

The market continued it's sell off today and put in a low of 1916, which looks to me like the end of W3. Ideally, we'll see a W4 bounce and get a lower low on a W5. The area I am watching is the 1885-1900 area, which has a cluster of support and which could provide a lower risk/higher reward long set up. If there's a sell off early Monday to that level, I will be selling my Gold and going long there with stops at the lowest support.

This correction we are seeing could be the start of a Zig Zag or a Triangle to form a Primary 4  (or LT Int 4 as I sometimes call it) for the longer term count. There is the chance the whole structure from 1074 is complete, but I like the idea of a Primary 4 and then a rally to 2400 more or less. IF this is a P4, the ideal bottom will be 1737, so another 10% downside from today's close. Economies around the world are looking strong, specially the US and China, so maybe we'll have see another big rally later this year or next until we see the next serious recession. Which would coincide with the last year of the US Presidency, just as it happened to the last two Bush Presidents (Clinton missed it by one year). Should a recession come during Obama's last year, Jeb Bush will be the new President imo.

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

Short Term Trend = Bearish
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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