The market staged a strong counter rally today by closing comfortably above its 200 DMA. Still, I wouldn't call this the end of the downtrend just yet until I see further evidence of a bottom. So far there seems to be a double bottom at 1991 but we need to see confirmation on the next pullback. If this level holds then we should see a rally to the Trend Average at the very least. I was hoping to see the 1950-1965 area so I could go long but I might end up using 1991 as my reference point instead to build my positions. If the market is able to recapture the Trend Average, we could see the initial stages of the next bullish leg to challenge all time highs. In fact, prices might not be this low for a while if all the trends go back to bullish. As I said a few weeks ago, Brexit provides the perfect excuse to leave interest rates as is and that provides the perfect excuse to rally the rest of the year.
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