Elliott Wave Stock Market Update - August 20

The market came a few points of its all time high, despite the 30 min MACD correcting (which is highly unusual and a sign of bullishness). A little help from China's PMI overnight could easily propel the market to a new high tomorrow. Looking at the waves, if I add 1.618xW1 to the 1929 low, we get 1993. However, since this looks like a nested 1-2 structure, the rally can go on for a while before exhausting. Also, the Intermediate Trend has turned back bullish which basically supports the completion of a 5 wave count from the 1904 low.

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.

Elliott Wave Stock Market Update - August 19

The market has continued its rally and the Inverse Head and Shoulder target has basically been reached with today's high. The market could still be putting in a "flat" correction, but looking at the NASDAQ, it looks like this rally might go on for a while. The fundamental picture continues to favor higher prices and as long as there are no signs of an economic slowdown, prices will continue to go up. Perhaps the market will go parabolic in the next few months before finally putting a decent correction?  Maybe when the doomers finally go bullish, the market will tank!

Short Term Trend = Bullish
Medium Term Trend = Bearish 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 into consideration other factors.

Elliott Wave Stock Market Update - August 18

The market made another high for the structure today and it is now looking like a bullish nested 1-2 that should easily rally past SP2000. The NASDAQ made a 14 year highs today and it might lead other indexes from here. So unless something disastrous happens in the next few days, bulls are going to make another run for the next few weeks until the next top. I've lost count of how many 1 wave corrections we've seen in the last couple of years but it seems we've seen them as often if not more than the traditional Zig Zags. Whatever the case, just keep an eye on the TA and we should be ok.

Also, I should add we issued a very well timed short for the recent correction and we recommended covering shorts the day before the rally started on http://www.ewaveanalytics.com Obviously, we're not always going to pick exact tops or bottoms but I think our analysis has a good combined value.

Short Term Trend = Bullish
Medium Term Trend = Bearish 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 into consideration other factors.

Elliott Wave Stock Market Update - August 15

The market gapped up this morning but then lost all its gains before bouncing at end the day neutral.  I realized I made an error in calculating the length of the C wave. Adding length of A to 1928 gives 1968 not 1978, so the high today would satisfy a C wave and allow for a sell off on Monday. At the same time, I could argue for the nested 1-2 that will top over 2000 once the entire structure is complete. Given the bullish cross on the daily MACD, the bullish TA and the IHS pattern. It looks like bulls are back in charge. Too bad, I missed my chance to go long.. but at least, I am enjoying my long term portfolio.

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 = Bearish 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 into consideration other factors.

Elliott Wave Stock Market Update - August 14

The Trend Average has turned green with today's close and we might see a nested 1-2 develop in the next few days. The 50 DMA served as resistance and there wasn't enough conviction to get the market past it. But if the prices are able to successfully test the TA, we should see 1978 at a minimum if we get a C or much higher if it's a W3. Also, the daily MACD will probably make a bullish cross tomorrow or Monday (unless something unexpectedly bad happens), so the short term is favoring the bulls. I tried bougth Oil today but got stopped out at a loss, that to me points to stability in the Iraqi situation.  If the TA is successfully tested, I will buy the SP500.

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 = Bearish 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 into consideration other factors.

Elliott Wave Stock Market Update - August 13

Seems like the market has bottomed for the B or W2 wave and now we will see if the current wave is a C or a Bullish W3. An ideal ABC would top at 1968 and then reverse hard or go into another zig zag. But if this wave can get very bullish and get the resistance in the 1973-78 area, we will most likely see the all time highs being challenged. The daily MACD seems to have bottomed and is looking for a bullish cross, this after resetting itself for almost a month from an overbought position. So despite the bearish trend in the market, this counter rally has the potential to turn into a strong bullish wave. Things will start favoring the bulls if the market can turn the Trend Average bullish and close convincingly over the 50 DMA, currently at 1956. I sold Gold today for some profit and looking for the next set up to get back in. Too bad the SP decided to go into my target buy area in after hours last Thursday.. I'd up almost 3% by now.

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


Short Term Trend = Bearis Trend being Challenged
Medium Term Trend = Bearish

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.

Elliott Wave Stock Market Update - August 12

A lower low was made today and technically it is enough for a B or W2 as the wave found bottom at the 38% retracement level, so we could see a bullish wave appear as soon as tomorrow. I still prefer to see the 1916 level tested first but not sure there are enough bears to bring the market down without a good geo-political excuse. Still, we could see market top around the 50 DMA before another bigger bearish wave to the 200 DMA at 1864. If the 50 DMA doesn't hold the advance then the market will very likely go for the IHS target of 1981.

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 = Bearish

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.