Elliott Wave Stock Market Update - September 18

Earlier this week I mentioned if the market recaptured the Trend Average, we should seen new all time highs. And today we got the first new all time high of possibly several to come. The market looks like it is going to gap up, so maybe we'll see the Inverse Head and Shoulder's target met tomorrow. Given the fact that Alibaba's IPO is finally coming tomorrow, I can see the bulls using the opportunity to go crazy. Personally, I am very tempted to buy it (Alibaba) but I probably will wait until there are enough sessions to calculate the trend. The problem is, we might see a very bullish week or two and I don't want to miss out on that. Now, with that said, I don't see a very clear micro count yet (I'm going mostly by the IHS pattern for now) and there is a possibility of a Rising Wedge or Ending Diagonal. So the market could sell off suddenly, but as I've been saying for several years now, trade with the Trend Average. DO NOT SHORT this market as long as the TA is Bullish unless you are 100% sure of what you're doing (meaning, you know where your stops are).

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

Short Term Trend = Bullish
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.