Elliott Wave Stock Market Update - December 9

The market followed though on its wave count and the Trend Average has finally turned bearish. It seems like it took forever, but better late than never. What remains to be seen is how high the counter rally will go and the pattern that it will create. I can see the possibility of a flat or something that will challenge the TA but not overcome it on the bearish side. However, if the market can rally to the high then it could set itself up for an IHS. Given the history of this market making very quick corrections and rallying, this shouldn't come as a surprise.

I ended up selling my hedge at a profit near the low today and will evaluate the long position in this counter rally. I am also planning to get the hedge (or maybe even short) near the TA in hopes the signal will not get whipsawed.

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.