Wednesday, September 10, 2014

Elliott Wave Stock Market Update - September 10

The market did not sell off as I had been hoping and instead it counter rallied to test the Trend Average towards the end of the day. So, the count I had yesterday gets eliminated due to W4>W1 overlap and the pattern not looks more like an ABC correction. With the C wave being an expanding descending wedge, a pattern we don't see that often. If the pattern breaks out to the upside (which it does 70% of the time), the target is 2021. Still, the overall picture is mixed and the TA has turned bearish (by a very slight margin). In addition, the daily MACD has rolled over so even if we get that bullish wave, chances are the market is going to see a stronger correction. I covered my short at a profit once waves started to overlap and I will look out for another short set up once I see trade set up again.

For further analysis on the NASDAQ, DJI, RUT, Gold, Silver and Oil please visit

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.

Elliott Wave Analytics

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