Tuesday, March 31, 2015

Elliott Wave Stock Market Update - March 31

The correction for the wave yesterday went deeper than allowed under wave rules for a 5 count and the close was under the Trend Average, so now the bias is back to the bearish side. Bears just need a solid catalyst to sell into and break the 2039.69 level to reverse the uptrend. Perhaps the Iran issue will be used as an excuse? But just like it can be used as a reason to sell, it could also provide an excuse to rally and break upper resistance. The best for now is to follow the TA until the next trend solidifies. Since the close was under the TA, I bought some VXX at EOD to hold until the short term trend reverses. And btw, if you want to see an episode of manic-depressive trading, check out VXX's chart for today. It spiked 10%, went down 15%, up 15% then down 10% in less than an hour! I wonder how many people got screwed on these swings. It looks like manipulated move to take out trade stops as the VIX itself wasn't going up down like that during that hour.

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
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 whipsaw

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