Elliott Wave Stock Market Update - January 23

The market started a correction as expected and technically should at least test the 50 DMA before the next bullish leg. So far it looks like an ABC move for a W4 and we should find out early next week. The ideal count for a C&H pattern would be a W2 for the handle, but we'll see if this micro count works. There are elections this weekend in Greece and this is perhaps the excuse to move the market on Monday. Some people worry about the implications of Greece leaving the EU, some say it won't be that big of a deal. Technically speaking, the Greek economy is relatively small at $260 billion. To put that into perspective, the US and China added about $1 trillion dollar each to their economies last year or 8 Greek economies in just 12 months. So if anything, it is more about the integrity of the EU as a union.

I am holding my oil position, so I hope the market will respect the 44.20 bottom and rally to its 50 DMA. Whatever the case, I'm sure the supply side is making adjustments with prices this low.

For further analysis on the NASDAQ, DJI, RUT, Gold, Silver and Oil please visit http://www.ewaveanalytics.com


Short Term Trend = Bullish
Medium Term Trend = Bearish trend being challenged

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 whipsaw