Elliott Wave Stock Market Update - March 06

The market broke 2085 support decisively, solidifying the bearish trend change. The next obvious target is the 50 DMA at 2062, which sits right on the next level of support at 2056-2062. So we'll see how this level holds early next week. Additionally, we have a rollover on the daily MACD which points to a bigger correction. Whether this pullback will be a sideways move like the last correction or one that goes for a 5-10% retracement will depend on how the market reacts at the 50 DMA and the 200 DMA levels.

I stopped out of my new Russian position when support was breached but looking to buy again at the next support level. Just too bad we didn't get an euphoric high to short and take advantage of this expected correction, maybe next time.

Have a great weekend!

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 whipsaw