Elliott Wave Stock Market Update - October 3

The potential bearish 5 wave count was invalidated at 1964 and the Trend Avg/50 DMA was almost tested with today's high. If the market is able to continue the rally next week, we might see the start of another multi-week bullish wave. The 200 DMA is at 1902 and the market might again be able to avoid a test, as it has in the last 2 years. Which in itself, is just a normal correction within a bull market but people just keep buying all the minor dips. I didn't sell my longs since the market has not reached my trading target, but I raised my stops to a little above break even.

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 = Bullish 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.