Elliott Wave Stock Market Update - August 08

The market broke out of the wedge today in a strong counter rally. The market actually did make it to the 1885-900 target zone I was hoping for since last week, but unfortunately it was not reflected in the cash market as this happened in pre-market, and the rally was in full swing already early morning. Taking into account how much the market rallied from the pre-market low to EOD, the wave is 37 points. If this is part of an ABC move, the market should easily reach the 50 DMA. But if this is a bullish W1, we are looking at new time highs. The current longer term count is likely to be a W4, and as such corrections will not be as deep and it's a good idea to prepare for a sideways correction/shallow correction before the market resumes its bullish trend. One piece of "real" news (as opposed to "excuse" news), is the export numbers from China yesterday. The numbers were very strong, and that signals the world economy is doing well. So despite all these events in Russia, Iraq, Argentina, etc. The bigger picture is the World's GDP continues to grow and companies continue to grow profits, which lays the foundation for a continued bull market.

I am on the sidelines with my trade account as I didn't get a chance to buy at the 1885-900 level. But if we get a decent B or W2 retrace, I'll be able to go long.

For further analysis on the NASDAQ, DJI, RUT, Gold, Silver and Oil please visit http://www.ewaveanalytics.com

Have a Great Weekend!


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.