Elliott Wave Stock Market Update - October 8

The market managed to put in another strong reversal today after putting in a marginally lower low at 1925, but this time the index closed above the Trend Average and you guys know I am all about that number. Obviously, today's bearish action invalidated the IHS option so we need to see if today's low will be re-tested or we will see the start of a new multi-week rally. Bulls need to recapture the 50 DMA at 1973 and stay above it, and bears need to get their act together as their time is basically running out. I went long today per my plan yesterday when I saw the market hesitate at the 1926 level, but I already sold half at test of the Trend Average for a nice profit and raised my stop on the other half to 1925.

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Short Term Trend = Bearish trend being challenged
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.