Elliott Wave Stock Market Update - September 04

The market made it's 3rd all time high in a row and reserved at the end of the day. However, unlike other reversals, this one ended below the Trend Average so I think this is the clue the top is in or the "neck" for a Head and Shoulders is being set up.  Going by my estimates, if we assume today's reversal wave from 2011 to 1992 is W1 or A, then I expect the 50 Daily Moving Average at 1968 to be tested in the next session or early next week. With that said, there is support at 1990 and the Trend Average remains bullish and if the market is able to put in another all time high, then that formation will likely be the head of an H&S. I will get into a short position once I see a clear set up.

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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.