The market has likely topped at 2116 for its Int W1 given with today's decisively bearish close. I had been hoping for a 5th wave to complete at a higher high but chances now look dim. Looking at possible retrace areas for the wave from 1871 to 2116, I like the 1990-2020 area as possible bottoms but a counter-rally is expected if the 2039 support level holds. A good correction would set up the market for a strong rally towards the end of this month or early December. The current excuses for sell off have been lower oil prices (which is ultimately bullish imo) and the interest rate hike, which in itself is historically bullish in the short term for the stock market. So my guess is the market will close the year with a new ATH. But for now I will be looking to short on a bounce to the Trend Average.
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 = Bearish trend being challenged
* 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.
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