Stock Market Update - June 4

The market broke out of its Ascending Triangle pattern early morning, but so far it is lacking momentum. If the market fails to rally over 1930 tomorrow, there's a chance the final leg is in and we will see a bigger correction coming. I noticed I made an error in calculating the length of W5 that I posted yesterday. The W1 is actually 24 points and not 18, so an "ideal" target would be 1915+24= 1939. But given the fact W3 extended past the original target for this wave, the slightly higher high today would satisfy a 5 wave count from 1862. I am still holding the same VXX position from last week but haven't added the other portion since we might get to the 1930's.

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.