Elliott Wave Stock Market Update - May 4

The market managed to follow through on its Friday rally and it looks like it is setting up another Inverse Head and Shoulders that targets 2,141. Ideally, we will see a retrace to test the Trend Average or the low 2100's and then see the start of a bullish W3 from there. The TA was whipsawed for the first time in several months, so the signal is now back to bullish. I am keeping all my positions from last week but will sell VXX on the retrace, unless support levels break.

 Also, I wanted to share this graph on seasonality. I think this is the ideal time to start a correction, so perhaps one more push and then we'll finally see some real selling,

For further analysis on the NASDAQ, DJI, RUT, Gold, Silver and Oil please visit http://www.ewaveanalytics.com


Short Term Trend = Bearish trend being challenged
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.