Friday, March 23, 2018

Elliott Wave Stock Market Update - March 23

A few days ago I wrote;

"Looking at the daily chart, the market is ready for a big sell-off and I think we will see the 200 DMA tested again in the next few weeks." 

The market did as expected but the test of the 200 DMA at 2585 came earlier than anticipated as the index reached it at the close of today's session. Which means, things can and probably will get a lot uglier next week. The next key support level is at 2532 but if the count posted is correct, we will see lower lows before any substantial bounce. If the selling was purely technical like the selling in February it would be easier to predict. But this time is different because this trade approach by Trump will damage sentiment, cause inflation, retaliation, etc. and eventually even a recession. So while I am not sure where this will end, I think all gains since the Nov 2016 low will be erased sooner rather than later. I'd like to see Trump tweet about that. Have a great weekend!

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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