Elliott Wave Stock Market Update - September 09

We finally had some guidance from the market today and it looks like it is going down. The break of 1990 will most likely result in a test of the 50 DMA at 1971, so now we have to see if we get 3 waves that gets a strong bounce from the 50 DMA or 5 waves to test support at 1952. Looking at the daily chart, the MACD rollover is imminent, unless there's a bullish miracle. I can see a Head and Shoulders forming if we get a bearish wave that gets stopped around 1900. But I also like the idea of an expanded flat where this bearish wave finds a bottom at the 200 DMA. I am already short, so I will just keep adjusting my stops to the TA or wave peaks/turning points. At this point, I will lower my stop to 1991, which already makes this trade profitable. And obviously, if the market is able to recapture the TA then we'll have to scratch the bearish targets and look for new clues.

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

Short Term Trend = Bullish trend being challenged
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.