Elliott Wave Stock Market Update - October 17

The bulls were able to regain some territory again today and so far it looks like the market wants to go for the IHS posted yesterday. However, another formed today (which is a bit easier to trade) that targets 1978.  Given how oversold the market has been, I wouldn't be surprised to see this high target met. The resistance levels are clear if the market breaks out, there are 1912, 1935, 1970. So I will hopefully buy on a break of 1898 and trade the IHS keeping in mind the resistance levels and the 200 DMA/TA. Now, the market can still be in a W4 wave and prices could go up to 1925 and still keep the bearish 5 count valid but that is not looking likely so far. Yellen hasn't given any hints of what the Feds intend to do yet, but I suppose if they delay tapering then it will be used as an excuse to continue the rally. In the overall scheme of things, earnings is what will support the market and that's technically what people should be focusing on.  And so far reported earnings are looking good.

Have a great weekend!

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


Short Term Trend = Bearish
Medium Term Trend = Bearish

Long Term Trend = Bullish trend being challenged

* 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.