Elliott Wave Stock Market Update - October 7

Bears made their presence felt today by breaking support and selling off towards the end of the day. The bullish 5 wave count I was tracking was invalidated and I replaced the labels with an ABC. If the bearish micro count is correct, we will see 1926 tested at the very least and we might even see the 200 DMA which is at 1904. Furthermore, the Intermediate Trend has turned clearly bearish with today's close so it is time to be cautious with longs. I got stopped out of my other half of the long position at 1949 at break even, but I am expecting a tradeable bounce if the market gets to 1904 or even 1926 if the selling exhausts around that level. And as I've been saying in the last few days, the market is technically ready to start a substantial rally given the oversold conditions. If the market fails to start a strong counter rally, then perhaps it is time to start expecting a "real" correction of 10% or more.

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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.