Elliott Wave Stock Market Update - February 2

The market finally managed to breach its 1988 support and surprisingly bounced substantially before the 200 DMA was tested (The DJIA had a 200 DMA test). So far, we have a clear zig zag in place but that could turn into a bullish W3 tomorrow since the trendline from the descending broadening triangle was broken. If we see the Trend Average recaptured tomorrow in a W3, we should see trade north of 2055 and even a challenge to all time highs given the target for the triangle pattern of 2088. So far all the waves from the 2064 top look very choppy (specially for a bearish W3) and failure to gain traction means this is just another correction. Also, oil has officially turned bullish and could easily test its 50 DMA soon or even $60, giving support to the energy components of the markets and most importantly an excuse to rally.

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