Elliott Wave Stock Market Update - October 10

The market failed to find support at 1925 and instead ended up testing the 200 DMA at the end of the day as I had speculated yesterday. However, since the low came at the close, there is a good chance  the low put in ES few weeks ago as the actual bottom for this sell off (1995 cash equivalent more or less). So early next week, I am looking at the 1880-1900 range as the potential bottom and a rallying point for a strong counter rally or sustained multi-week rally. I was really tempted to go long at the close, but I'll take my chances and wait until Monday before committing.  I find the risk/reward at this level is very favorable, specially given where the stop level is.

We will be making trade recommendations this weekend on the EWA site. For further analysis on the NASDAQ, DJI, RUT, Gold, Silver and Oil please visit http://www.ewaveanalytics.com

Have a great weekend!

Short Term Trend = Bearish
Medium Term Trend = Bearish

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.