Elliott Wave Stock Market Update - July 30

The market gapped up to test the TA but reversed to put in a lower low to close again below the Trend Average. So far, the bearish wave to 1962 looks like a C wave and unless we see strong selling tomorrow, we will probably see the all time high challenged again. The GDP number was very good, so fundamentally the reason to continue the rally is there. On the bearish side, we have Argentina defaulting on it's debt and perhaps that could be used as a reason for a sell off. However, this default is more of a dispute than an actual default, so in reality not much of a bearish event if you understand the situation behind it. Even when Argentina defaulted in 2001, everything was normal after a year or two. I was in Buenos Aires around that time and there were hardly any traces of any financial crisis, in fact, it was a great time to visit.

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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 into consideration other factors.