Elliott Wave Stock Market Update - October 14

The market attempted to rally earlier in the morning only to give up most of its gains by the end of the day. There are couple of ways to look at the waves, but it seems like the bearish structure is trying to find a bottom given all the overlapping waves. It will be interesting to see what the market does once it reaches the Trend Average, which has now fallen to 1929. If the market can turn the TA around, there's a very good chance the 50 DMA will be the next trendline to be tested.  Also, I am posting the monthly chart, which I don't think I have updated since last year. If that long term count is correct, we should see a shallow correction (relative to the huge rally since late 2012) and then finish the W3 of W3, so technically there's still a long way to go. Lastly, there's a lot of talk about Oil lately and I wrote about this a weeks ago on the EWA site on the levels where it should bottom if mid 80's support broke. At this point, $77 looks like it will be the floor so that might be a trading opportunity once Oil gets close to it and perhaps coincide with an stock rally.

We will be making trade recommendations this weekend on the EWA site. For further analysis on the NASDAQ, DJI, RUT, Gold, Silver and Oil please visit http://www.ewaveanalytics.com


Short Term Trend = Bearish
Medium Term Trend = Bearish

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.