Elliott Wave Stock Market Update - April 11

The market rallied early morning to challenge its Friday's high but ended up reversing despite the rally attempt. I mentioned last week oil was going to keep rallying (closed over $40 today) and strength in energy shares have probably prevented a stronger sell off. However, I favor continued downside to test and most likely break last week's low at 2033.

For an more elaborate analysis of the current wave please visit http://www.ewaveanalytics.com The current rally in equities and oil was called almost perfectly over a month ago on that site.


Short Term Trend = Bearish
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 - April 8

The market counter-rallied today as I suspected and fell short of yesterday's high before heading back down and closing under the Trend Average. This close turns the short term trend bearish and this increases the chances of lower lows next week. With that said, oil has been rallying and this has provided an excuse for equity buyers to come out. Since there is a high possibility oil is headed back towards a test of its most recent high, it's hard to see how bearish momentum could gain speed while energy shares rally. Also, I found the bounce off the 2044 support a bit suspicious as this leaves a bullish set up going into next week. So I turned cautious towards the EOD and ended up closing the rest of my shorts to avoid any surprises on Monday. I'll re-short if resistance levels are tested again or go long on a test of the 200 DMA/2022.

Have a great weekend!

For an more elaborate analysis of the current wave please visit http://www.ewaveanalytics.com The current rally in equities and oil was called almost perfectly over a month ago on that site.


Short Term Trend = Bearish
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 - April 7

The sell off continued today as expected and the previous low was breached easily. There is now a head and shoulders pattern targeting 2011 and we could see more further downside tomorrow. The next support levels to watch is 2022 and the 200 DMA at 2015. A counter-rally from those levels could create an even bigger head and shoulders with a target in the mid 1900's or around the 50 DMA level. I ended up locking profits on half my shorts and will be riding the rest until a test of 2022 or the 200 DMA. I am also moving my stop to yesterday's high.

For an more elaborate analysis of the current wave please visit http://www.ewaveanalytics.com The current rally in equities and oil was called almost perfectly over a month ago on that site.


Short Term Trend = Bullish trend being challenged
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 - April 6

The market bounced back as expected and we could see the 2072-2076 area challenged tomorrow. The assumption is the market will not be able to get past resistance and head back down to challenge yesterday's low. However, if the rally takes prices past 2076 then we could see the uptrend continue for a while more. The market is is overbought at this point but oil is rallying again after a 50 DMA test, so equities could benefit from strength in the energy sector.

For an more elaborate analysis of the current wave please visit http://www.ewaveanalytics.com The current rally in equities and oil was called almost perfectly over a month ago on that site.


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 - April 5

The market went for the Trend Average as expected but prices closed below the TA in what seems like a completed bearish micro-count. I am assuming there will be a bounce if 2044 holds but ideally we should see more downside after a counter-rally. The big question is whether the bottom will be found around the 200 DMA level or the 50 DMA level. I was supposed to close my short position at EOD but had phone issues, so I am raising my stops to slightly profitable. I will go long when the 200 or the 50 hits IF there is confirmation of a change to the bullish side on the long term signal.

For an more elaborate analysis of the current wave please visit http://www.ewaveanalytics.com The current rally in equities and oil was called almost perfectly over a month ago on that site.


Short Term Trend = Bullish trend being challenged
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 - April 4

The market started a correction as expected and assuming the top at 2075 doesn't get breached, we should see lower lows in the next few sessions. I'm assuming the Trend Average will be tested at very least but considering how far the market has come since February, a correction to the 200 DMA or the 50 DMA would be more reasonable. If the TA is able to hold the correction and maintain its bullish signal, then it will mean bulls are not done yet.

For an more elaborate analysis of the current wave please visit http://www.ewaveanalytics.com The current rally in equities and oil was called almost perfectly over a month ago on that site.


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 - April 1

The 2076 resistance level was finally challenged today on what seems like the 5th wave of the micro-count posted. I think a pullback of some sort is due, specially with several resistance layers ahead. But this being the stock market, if prices are able to cut through resistance then we are looking at a challenge to all time highs. I bought back my short position right at the 2076 test and I am placing another tight stop just in case bulls keep pushing the market up.

Have a great weekend!

For an more elaborate analysis of the current wave please visit http://www.ewaveanalytics.com The current rally in equities and oil was called almost perfectly over a month ago on that site.


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.