Elliott Wave Stock Market Update - September 12

The market failed to hold above the 1989 level I mentioned yesterday and ended up putting in a lower low at 1980. I see 3 waves down so far from 1997 and we could see another bearish wave to test the 50 DMA at 1972 and complete a 5 wave move. All these zig zagging waves continue to buy time for the bulls (Implies a W4), so unless there is considerable downside in the next couple of weeks, there is a good chance we will see new all time highs again once daily oscillators reset. I was stopped out at 1989 with a minor loss, and I am going to be on the sidelines until I see the next trade opportunity. Perhaps, I will try going long at the 50 DMA and use a 5 point stop if we get there. The market should start a counter rally early next week.

Have a great weekend!

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 = 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.