Thursday, March 22, 2018

Elliott Wave Stock Market Update - March 22

The market sold off as expected and it looks headed towards the 200 DMA currently at 2584 earlier than anticipated. I was only looking at charts yesterday when I saw the bearish pattern but with the announcement of the trade tariffs against China today it now makes even more sense. Whatever benefits the tax cuts will bring, they will be negated by a trade war with China. This could have worked maybe 15-20 years ago but when you slap tariffs on a country that will become the world's largest importer in the next 4-5 years, it is just short sighted and highly damaging to US economic interests. It's the government's job to ensure other markets are equally as open as ours and encourage our companies to do better. But when you start by looking at a number (trade deficit) and try to cut it just because you don't like it, it's similar to pointing out millionaires and coming up with a plan to make their wealth closer to that of the average citizen by taxing them more. This is capitalism not socialism but orange face does whatever he wants, so let's now see him take credit for the market downturn.

Short Term Trend = Bearish
Medium Term Trend = Bullish trend being challenged
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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