Elliott Wave Stock Market Update - September 08

We didn't get follow through buying today and the short term pattern can be interpreted as a 1-2 for both bulls or bears. But basically, the key markers are the all time high or the 1990 support level. A break of either one, confirms what will most likely be a W3. The market also closed right on the Trend Average, which is as neutral as it can get.  There is however a Diamond Top like pattern and the daily MACD wants to rollover, so we could be at the top already or like I said last week, we get one final leg up before the real correction starts.  I am keeping my short position but now lowering my stop to 2007.

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.