Elliott Wave Stock Market Update - July 21

The market started the day on the bearish side but it bounced right off the 1965 level to close just above the Trend Average, which will possibly turn bullish if the market manages to trade above it tomorrow. There is the possibility of a Double Shoulder Inverted H&S, so if we see the market bounce off 1965 again, chances are we will see a break out rally. A potentially profitable set up is to buy at 1966 with a stop at 1958, with the upside potential of 2005. I sold Gold today to lock in profits and I will either buy the market if we see support tested again or buy gold at the test of its 50 DMA.

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 = 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.