Elliott Wave Stock Market Update - August 05

The market made a lower low as expected and this bearish wave should be the final one in the structure before another counter rally. Looking at the micro count on today's bearish wave, I see an incomplete impulse. So there's a good chance the market is not done selling just yet. If 1942>1926 is wave 1, then I have 1885-900 area as the target for a bottom and the level I like for going long. I just hope Gold does something so I can cash in with some profit, despite the geo-political news that were supposedly the reason for today's sell off, Gold barely moved. Which implies there isn't as much fear during this sell off. Last but not least, the Medium Term Trend has turned bearish and this now has the potential to drag one for a few weeks or even months. If you enjoy shorting, the risk/rewards favors the bears as long as the market trades under the Trend Average and the 50 DMA.

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 = Bearish

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.