Elliott Wave Stock Market Update - October 6

Sorry for the late update, I had another busy day today. The market tested its 50 DMA as I had been expecting and now we have another Inverse Head and Shoulders targeting new all time highs at 2037. And while the trend is bearish and the intermediate trend is about to turn bearish, there's a good chance the IHS will materialize given the oversold conditions and last week's strong reversal day. Obviously, a corrective wave can not go under 1926 and I'd like to see the market recapture the 50 DMA and the Trend Average in the next session or two to confirm a new rally. If the bears fail to gain control this week, I think they will have to wait again for a while before another chance. I ended up taking half profit on my longs and I am keeping the other half with stops raised to break even (1949).

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 = Bullish trend being challenged

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.