Elliott Wave Stock Market Update - September 29

The market seemed like it was going to sell off strongly early morning, but instead it reserved most of its loses by the end of the day. There is a Diamond Bottom pattern and one could argue for a 1-2 set up for both bulls and bears on the micro count, so this could go either way tomorrow. What's happening in Hong Kong doesn't help worldwide sentiment, but at the same time China just put in a 52 week high tonight. The irony is shares from Chinese companies trading in both China and HK see their stocks rally in the SSEC, while it sells off in HK. At one point, people that step in to take advantage of the price discrepancy of shares from the same company will make a killing.

My guess is the market will hold to an excuse to do whatever it wants and then surprise most people as it usually does. I am on the sidelines until there's more clarity, but I am leaning towards going long if the low for today holds.

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.