Elliott Wave Stock Market Update - October 9

Another exciting day on Wall Street. The market sold off today just as hard as it rallied yesterday, so now the bulls need to make their case before selling gets out of control. Looking at the chart pattern, if we get a bounce tomorrow that stalls around the Trend Average, then we could be looking at a Descending Triangle with a target of 1875. However, if the selling continues tomorrow, I think there's a very good chance the market will find a bottom at the 200 DMA/1904 support level. Again, a level the market has not seen since late 2012! I ended up getting stopped out of half the longs I had from yesterday in afterhours as it dipped below the equivalent of 1925 cash. But I will be going long again if the market makes it to 1904 on a continued sell off with a short stop.

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 = 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.