Elliott Wave Stock Market Update - September 24

"Perhaps the plan is a 1978 test and then a bounce to form a right shoulder? We'll find out very soon."

The market tested and found bottom at 1978 today as I speculated on Monday and now we'll see if the counter rally stalls to form a right shoulder of a Head and Shoulders. The counter rally has been strong and one could argue for a complete trend reversal. But the real test is overcoming the 2010 level for the bulls,  so we'll see how the market behaves at that resistance level. I am keeping my longs and raising stops to just above break even, hopefully the market will form a good right shoulder so I can sell longs and go short there. But if the market manages to break resistance, I will just ride longs until a new all time high challenge. One fact worth noting is the daily MACD made a bearish cross couple of weeks ago and the market is still at the same level, so the longer the market keeps holding up, the slimmer the chances of a real sell off happening.

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

Short Term Trend = Bearish trend being challenged
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.