Thursday, January 29, 2015

Elliott Wave Stock Market Update - January 29




















The market put in another lower low as expected and it stopped right at the 1988 support I mentioned yesterday before rallying substantially. In an "ideal" bearish scenario, the market should have bounced into a W4 wave before resuming selling towards the 200 DMA. But that's not what happened as the bounce went into what should have been a W1 within a bearish nested structure, eliminating the bearish count and putting the bearish impulse into question. Still, the market has not tested the Trend Average yet and is far below the 50 DMA. So while the trend is bearish, the waves are giving us a mixed picture. Sellers need to breach the 1988 level in order to gain momentum, failure to do so will likely result in bulls gaining back control.

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 whipsaw

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