Elliott Wave Stock Market Update - January 29

The market finally made a decisive move to break out of resistance and there should be enough momentum to hit the IHS target of 1978. Most importantly, the Trend Average has turned bullish and there is a new bullish MACD cross on the daily.  We should find out soon if this is just another counter-rally or the beginning of a sustained uptrend in the next few weeks. Oil hit another higher high today and there is a good chance we might see prices stabilize going forward. If Oil can find its footing, equities should be able to test the 2040 level and maybe even re-capture its 200 DMA. I knew Marc Faber announcing he would not see another bull market in his lifetime a few days ago was a sign of a bottom, he's the ultimate contrarian indicator.

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 = Bearish
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 - January 28

The market managed to close above the Trend Average but still hasn't made a significant move to break out of the pattern. Oil has resumed its rally towards the $37 level and technically this should be a good enough excuse for equity bulls to come back. But I guess bulls are trying to make up their minds at this point. China has made another lower low and it is now off almost 50% off its recent peak from summer 2015. Retail investors dominate the SSEC and it is interesting to see how the same people who were buying like crazy less than a year ago are now selling a market that is extremely cheap at the moment.  I was hoping I'd hit my retirement goal this year but I guess I might have to wait until my original 2017 year after all.

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


Short Term Trend = Bearish trend being challenged
Medium Term Trend = Bearish
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 - January 27

Upper resistance broke today but gains were reversed after the Fed statements. The pattern doesn't look as bullish as it did yesterday but it still has a good chance of a break out. Oil rallied today and continued stability in energy should give equities the excuse to start a multi-week rally. However, until the Trend Average turns bullish, the best is to be cautious on long trades.

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


Short Term Trend = Bearish trend being challenged
Medium Term Trend = Bearish
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 - January 26

The market rallied today (along with oil) and a clean break of 1906-1908 resistance will most likely lead to a break out. Like I said yesterday, oil will probably be the driver for equities in the next few weeks and I do see signs of a bottom there as well. Also, it's worth noting that the Baltic Dry Index made a historical low today at 345, down from a high of 11,000+ in 2008. This index reflects the commodities shipping slow down, primarily as China has all the infrastructure it needs. Lastly, China made a lower low yesterday in its multi-month correction and the end of the sell off should be near in that market. Therefore, these bearish extremes are a contrarian sign that the worst for equities might be over. After all, economies continue to grow at a healthy pace and this oil issue is a manufactured bear market that ends up benefiting consumers in the end.

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


Short Term Trend = Bearish trend being challenged
Medium Term Trend = Bearish
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 - January 25

The market corrected some of its recent gains today and ended up closing right on its first level of support at 1878. If the selling continues, the next level to watch is 1857-1859. The pattern in place is bullish as long as we get higher lows. Ultimately, oil will probably be the key driver for equities in the next few weeks and we will see volatility until oil prices stabilize.


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


Short Term Trend = Bearish trend being challenged
Medium Term Trend = Bearish
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 - January 22

The market has been able to gather some bullish momentum and we should find out how sustainable the rally is next week. Oil has shot up more than 20% since its $26 bottom and continued stability in energy will help equities continue its rally. It's too bad I wasn't able to execute my long trade as I was waiting for $25 oil. But it's ok, I rather be conservative in counter-trend trades than risking the possibility of catching a falling knife. At least I'll get cheaper gas in the next few weeks :)

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 = Bearish trend being challenged
Medium Term Trend = Bearish
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 - January 21

The counter-rally was able to continue today and it now seems like a bottom has been found. There is an Inverse Head and Shoulders targeting 1978 and a clean break of 1900 would confirm this move. As I mentioned yesterday, oil finding a bottom was key to a rebound in equities and so far it looks like a bottom has been found in oil as well (oil is trading close to $30). With that said, the trend continues to be bearish and the market has a lot of rallying to do before reversing all the bearish damage done this month.

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 = 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.