Prices failed to follow through on last week's rally and instead had the first significant sell off for the year. Normally, I would assume this is just a correction with higher highs to come. But the "island top" pattern on the chart is troubling for the bullish case in the short term. So, until I see the pattern invalidated, my assumption is the Trend Average will be turning negative soon. The sell off triggered my stop, so I am out of the market again and waiting for another set up to get back in.
The sell off today is being attributed to Trump's policies. While, the market was due for a correction, I am sure Trump didn't help much with his immigration ban. I agree that political correctness should be put aside in order to keep terrorists out, that people should be checked throughly when they are from "problem" countries. However, this ban is simply ridiculous and hurts people who already live legally and peacefully in the US. I find it ironic that Trump didn't ban people from countries that have actually sent terrorist to the US like Saudi Arabia, Pakistan, or Afghanistan (he has business interests there apparently). Instead he banned people from Iran, who are normally victims of Al Qaeda/ISIS terrorism and have zero record of ever committing or planning to commit terrorists acts in the US. Somebody needs to tell him the difference between Sunny and Shia muslims.
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
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