Tuesday, December 8, 2015

Elliott Wave Stock Market Update - December 8

The market made a lower low today and unless this is a bearish nested W3 wave, there is a good chance the bottom is in for this particular correction as long as the low holds. However, the close is well under the Trend Average and a bottom can't be confirmed until that level is re-captured. The ongoing concern is oil, which has been a drag on energy companies and the overall market this year. The next major support for oil is $32, which is not all that far from current levels and if that level holds, we should see a rally to the 50 DMA again and with that a parallel rally in equities. In all, lower oil prices is equivalent to a tax break so the lower the better for consumers and the economy in general (except those states who depend on oil production).

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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