Tuesday, October 28, 2014

Elliott Wave Stock Market Update - October 28

The market has continued to rally as expected and has now reached and surpassed the Inverse Head and Shoulders target of 1978, first posted almost 2 weeks ago when the market was at 1880's. At that time the IHS target seemed like long stretch given all the fear about Ebola, QE, Oil, Europe, etc. And this rally is a reminder of why objective technical analysis is a better predictor of market behavior.

Now that the structure seems complete, I favor a top in the next few sessions and then a drop to test the Trend Average or better yet the 1925 level. However, if 1986 is broken then the next stop will likely be 1999 and in turn raise the target bottom to about 1950 (Assuming the market is about to put in a big IHS to much higher highs). But if this rally has been a B wave, then we should see the 1821 low tested. I went short to hedge my longs as planned and will be covering on the pullback to the TA or sell my longs if people get overly bullish past 2000.

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 = Bearish trend being challenged
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.

No comments:

Post a Comment