The market finally had a sell off after rallying for couple of weeks. I see 5 waves down but we could see a mild a bounce before seeing more downside to complete a bigger 5 wave count. Losing the Trend Average and the 50 DMA at 2097 are signs the summer correction is here but we need to see this structure break 2068 to confirm the most recent high as a top. Fundamentally, the sell off is being blamed on the dollar which basically is following the count I posted on Friday. The dollar has a good chance of testing its high for the year in this bullish wave, so we'll see how the stock market will deal with this. On the bullish side, China has resumed its rally just like I posted on Friday as well but I don't think that will do much for sentiment here in the US. That market has rallied 5% is 2 days, so I am now about 10% away from my goal.. it's complete mania there. Traders there have no regards for fundamentals which in a way is great for someone who is paying attention. It allows you to pick stocks ultra-cheap (and they were ridiculously cheap for years, that's why I put all my money there) and sell them really high.
Last but not least, here is the LT chart I last updated in Dec 14. I calculated the wave length for the current rally and had a target of 2,168. So the most recent high is close enough but we could still see some sort of bullish miracle in the next few weeks to a higher high.
For further analysis on the NASDAQ, DJI, RUT, Gold, Silver and Oil please visit http://www.ewaveanalytics.com
Short Term Trend = Bullish trend being challenged
Medium Term Trend = Bullish
Long Term Trend = Bullish
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