Thursday, April 7, 2016
Elliott Wave Stock Market Update - April 7
The sell off continued today as expected and the previous low was breached easily. There is now a head and shoulders pattern targeting 2011 and we could see more further downside tomorrow. The next support levels to watch is 2022 and the 200 DMA at 2015. A counter-rally from those levels could create an even bigger head and shoulders with a target in the mid 1900's or around the 50 DMA level. I ended up locking profits on half my shorts and will be riding the rest until a test of 2022 or the 200 DMA. I am also moving my stop to yesterday's high.
For an more elaborate analysis of the current wave please visit http://www.ewaveanalytics.com The current rally in equities and oil was called almost perfectly over a month ago on that site.
Short Term Trend = Bullish trend being challenged
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.