Elliott Wave Stock Market Update - October 20

The market was able to break above the 1898 resistance and closed just below the 200 DMA. The short term oscillators are overbought, so we could get a pullback to support before another bullish attempt on the 200 DMA. The market closed over the Trend Average, but since it is down sloping, I think it will take couple of bullish closes to turn the trend bullish. For now, the market looks stable but the real test will come at the pullback. The level I am paying attention to is 1877, if that holds then I think the market could get very bullish. I went partially long today on China shares and might add SP500 on a pullback using 1877 as the stop.

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 trend being challenged
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.