Elliott Wave Stock Market Update - December 10

The closest the market got to the TA was at the closing yesterday and today the sell off continued in what is possibly a C or a W3. As I mentioned when the MACD rolled over last week, it is very likely we will see the 50 DMA tested and that level is currently at 1993 so not all that far from where the market is now. However, should the selling accelerate, then the 200 DMA would be a better target at 1944 but that would be a stretch considering the season we are in. And like I said last week, a correction this week would set up the market for a Santa rally so while we might see further downside, the market could be making new all time highs in couple of weeks. The excuse has been China and Oil, but China will probably cut rates very soon and Oil will find a floor possibly in the 50's, so sellers will need better excuses to make their case.

I was hoping to buy VXX at the TA test but since the market didn't get there, I ended up buying back SH to hedge longs. I decided to keep my longs since they're China centric and I am betting a rate cut is coming.

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

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.