The market sold off and closed significantly below the Trend Average, turning the signal bearish in one shot. It's hard to say the uptrend is over until 2072 gets breached so if this bearish structure stops here then there's a chance for the rally to continue. However, if 2072 doesn't hold then the market is probably done going up and we should expect lower lows to come, which would line up perfectly with the "Sell in May" scenario. A weak dollar and the ongoing rally in oil should help minimize the sell offs in stocks or even be used as an excuse to rally. I am still holding to oil and not planning to sell just yet, specially now that many traders are now covering shorts. Which to me is interesting, since I would have covered shorts couple of weeks ago when oil had an obvious bullish break out. I guess some traders are not technical at all.
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