Elliott Wave Stock Market Update - October 27

The correction continued today but again prices did not move much and short term oscillators have now reset for another bullish leg. I am looking at 2103 as the major point of resistance, so we'll see if the bulls have enough momentum to carry the market there. Once a short term top is found again, I expect the Trend Average to be tested. I'll probably buy back the shorts I sold last week as we get closer to resistance.

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 = Bearish trend being challenged

* 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 - October 26

The market consolidated in a somewhat uneventful day. Short term oscillators are resetting and I expect another rally soon that will challenge the 2100 level, which is where the next major resistance level is. October is almost over and the SP500 is up less than 1% in 2015, so we'll see what the bulls can do for the next couple of months. I remember my original projection for the SP500 for this year was 2250 in December 2014 (as long as there is no recession) and we might see the market get there if the rally starts gathering momentum.

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 = Bearish trend being challenged

* 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 - October 23

The market breezed through the 200 DMA as if it didn't exist in another very bullish day.  I had expected the 200 DMA to be challenged in the best case scenario under the count I was posting but since the market is showing signs of a W3, I have to re-label the count. I mentioned the possibility of a very bullish count when the market bottomed at 1990 couple of weeks with this bottom as a W2. I figured after a 100+ point rally at that point, the more reasonable label would be a W4 for 1990. But it now looks like this current structure from 1871 is heading much higher before a significant correction. In fact, there is enough momentum to reach an all time high on this wave.

When the stronger correction was predicted in August (around the time the intermediate term turned bearish), I felt the 1820-1900 area served as a good area for a LT W4 to bottom. I expected the correction to take longer and perhaps challenge the 1820 level. But instead it seems the LT W4 was a one wave correction to 1867 as it now looks very unlikely we will see stronger sell offs in the near future. So my expectation is for the market to rally the rest of the year and perhaps most of 2016 as well. Interest rate hikes look even more unlikely now that the EU is hinting at more QE and China continues cutting RRR,  these factors support a worldwide rally. So don't be surprised to see new all time highs now only in the US but in Europe and China.

I covered my shorts at the 200 DMA as planned and I am not shorting this until the new count is completed. In the meantime, I am hoping China continues to rally in what continues to look like the start of a W3. Maybe I'll get lucky and reach my retirement goal by summer 2016.

Have a great weekend!


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 = Bearish trend being challenged

* 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 - October 22

I was wrong in assuming 2039 was the top of the count as prices easily broke resistance early morning. The next obvious challenge is 2060, which is the 200 DMA and if that breaks then there isn't much resistance until 2100. I moved some labels around to reflect today's rally but if the rally gets past 2060, then I'll have to consider something else. The bias has been right but the count is starting to look suspect.

I am assuming the positive earnings announcements after the market closed will push prices towards resistance tomorrow. I am ready to sell the shorts I bought at 2030 if the 200 DMA doesn't hold but I I will be buying them back later for a third try. At this point, I think most bears are starting to realize their time is over.

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 = Bearish 

* 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 - October 21

The 2039 level has held as top and today's selling supports a completed count. The next level to be tested and which can possibly end up being a bottom is 1990, so I will probably cover my shorts around that level. Assuming there is a zig zag correction to the entire structure from 1871 to 2039, we could end up with a Head and Shoulders forming with 1990 as the neckline and an ultimate target of around 1950. Perhaps headwinds from China or bad earnings can serve as a catalyst for this coming correction.

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 = Bearish 

* 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 - October 20

The market reached and peaked at the 2039 resistance level I've been mentioning for few weeks. I had originally expected this level to be challenged back when the market topped at 2020 but it took an extra month to get there. If the market is able to get past 2039, then the next stop will be the 2055 level. Technically speaking, there are enough waves to call the top today but there might be a little more left for one more push.

I also added a bit more to my China position, so hoping that market will continue going higher now on a second "bubble" rally.

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 = Bearish 

* 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 - October 19

The market seems to be completing the count posted, so not much to add today. It's still early to say but unless the market plunges to lower lows (which looks unlikely at this point), we should expect a strong rally to come after the coming correction is over. We are about to enter a seasonally bullish period and the absence of bearish catalysts is enough of an excuse to continue the rally.

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 = Bearish 

* 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.