Elliott Wave Stock Market Update - July 6

The market continued to sell off earlier in the morning and tested the Trend Average as expected. However, loses were reversed for the rest of the day and a test of the 2050-2065 area doesn't look as likely anymore. Unless the pullback that started earlier this week turns into a complex correction, we could see prices headed for a bullish break out as soon as tomorrow. The excuse for today's turn around is the Feds holding on rising interest rates because of Brexit, which should not come as a surprise as Brexit is essentially a bullish event for the US stock market. As I stated here few weeks ago;

"My guess is that the Brexit side will win and that will help the market get to 2025. However, once the dust is settled, the potential of a recession in the UK and the rest of Europe will force the Feds to not raise rates, which in turn is bullish."

Anyway, I went 50% long after the market bounced off the Trend Average and set the stops at 2074. I will buy the rest once I see a clear micro-count evolve. Last but not least, China is starting to show signs of a break out so hopefully bullish momentum will continue in the next few weeks to confirm.

For further analysis on the NASDAQ, DJI, RUT, Gold, Silver and Oil please visit http://www.ewaveanalytics.com


Short Term Trend = Bullish
Medium Term Trend = Bullish

Long Term Trend = Bullish

* 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.