Elliott Wave Stock Market Update - January 12

The market failed to hold on to its 50 DMA and breached the 2029 level early morning, which now turns the Intermediate Trend to the bearish side. The next target for the bears is 1992 and a breach of that level will likely result in much lower lows. Still, the bulls still have the start of the earnings season (which I think will be positive, except for energy) and the sell off in oil should be about done. So we'll see if the bulls can turn the trend around the rest of this week, if not then down the market will go.

Unfortunately for me, the pattern I was trading in oil ended up a bearish W2 so I got caught in today's bearish micro W3. My stop was hit before I could sell, so instead I ended up holding so I am hoping I will be right about a strong bounce in the next few days. Also, if the market zig zags to a TA for a test, I might add shorts there to hedge my longs.

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.