The market went into a correction mode today and tested its Trend Average before bouncing back, eliminating the micro-count I had been following. Still, the market looks like it corrected enough to launch another rally to a new all time high so we'll see how the wave evolves before labeling it. Like I've been saying, a rally to 2150 before a substantial correction would be best but there are 5 waves in place and we could see a turn soon, specially considering oil has lost its TA and headed towards a test of the lows.
On Feb 9th, I posted this:
Oil continues to support the stock market, but now that its 50 DMA was tested today at $53.92 as I had been expecting, we could see a resumption of another bearish wave in oil. Which in turn could be used as an excuse for the stock market to sell off again.
With that said, this bearish in wave in oil could be its last. So once that excuse to sell is over, we could see renewed optimist in equities and consequently new all time highs. The bottom line is the world continues to grow and so will profits. Just look at the Apple money beast, which is technically not even overpriced, even at a $750 billion market cap.
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 = Bullish
Long Term Trend = Bullish
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