Elliott Wave Stock Market Update - February 6

Prices rebounded today after selling off substantially overnight in what I assume is a W4. So, if the count is right, we should see another leg to a lower low before a counter-rally to test the Trend Average. If prices are able to rally back up to the TA, then this will invalidate the 5 count and make this a zig zag correction within an uptrend.

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 = 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

Elliott Wave Stock Market Update - February 5

What a day. I think it's clear now that we have a W3 in place and there are much lower prices to come. Today's sell-off was the worst in 6 years, erasing all gains made in 2018 and some. While we don't know if the bull market that started in 2009 has finally topped, today's action raises the probability that it is all over for the bull market. I've been saying for months that there are enough waves to call the rally over and maybe what were are seeing it's just the beginning for a bear market that will send prices back to test the 1600 level. Obviously, too early to tell but we'll see.

Prices went through support and the 50 DMA like they were not there. But the next level of support is near the 200 DMA at 2530-2550 and we could see a dead cat bounce from there. Ultimately, a 5 wave count would be ideal of it found a floor at 2425.

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 = 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

Elliott Wave Stock Market Update - February 2

The market followed through on its bearish pattern as I had been expecting and we saw the biggest decline in almost 2 years. A lot of people in the financial media are trying to rationalize why the market is selling off despite the good numbers, but this shouldn't come as a surprise who reads this blog frequently. Now the question is whether the wave today is a W3 or a C wave. I think if we see selling acceleration early next week, then it will confirm a W3. But if prices are able to reverse today's losses, then we should be looking at a C and one more leg to new highs. The key level to watch is the Trend Average as it has proven to be a reliable indicator the great majority of the time. Personally, I'd like to see more downside so I can buy back the stocks I just sold but I am fine either way. Last but not least, support is at 2675-2690, but if that breaks then prices will head for 2600.

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
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

Elliott Wave Stock Market Update - February 1

The market has continued to show weakness but making a marginally lower low and looking at oscillators, we could see more selling pressure tomorrow. I was expecting a stronger but it seems like most of the counter-rally occurred in pre-market, so if the selling is strong tomorrow it will mean the W2 or B is done. I didn't get a chance to go short as I had been hoping but I did sell my China positions (first time in 7 years) and will buy them back at a better price hopefully.

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 = 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

Elliott Wave Stock Market Update - January 31

Prices made a lower today before closing the session marginally higher. I wasn't expecting to see a downward impulse at this point but this is what the chart shows and the coming bounce is very important as it could be the turning point to the entire rally for the past year. If prices are able to bounce and make a new ATH, then the bearish set up will be invalidated. But anything short of an ATH sets the market up for a sell-off. The Trend Average has turned bearish and a sell off would confirm the top at 2872. We have seen this several times in the last year but the market is severely overbought and can easily go into a strong correction.

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 = 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

Elliott Wave Stock Market Update - January 30

The market continued its correction today and the W4 low I mentioned yesterday was taken out, so we could see further downside after a bounce towards 2850. Prices would have to make an all-time high to invalidate the current bearish set up but I am not all that confident of a major sell off just yet, despite the historically overbought conditions. I might buy back the shorts I stopped out of few weeks ago if the 2850 level is reached.

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

Elliott Wave Stock Market Update - January 29

The market had one of the biggest declines of the year (believe it or not) in today's session. But as long as prices stay above the W4 low of 2824, the rally will continue towards new ATH. in fact, if prices fail to pullback substantially in the next few weeks, we could see this rally extend until April or May.

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