Tuesday, May 5, 2015

Elliott Wave Stock Market Update - May 5

The correction to the TA started today as expected but it went down deeper than I had anticipated by breaking below initial resistance and all the way down to 2090, which is 50 DMA support. The IHS might not look as good but it is still valid. So if the market intends to go for a new high,  we should see bulls take control tomorrow. Trade below 2077.59 will eliminate the bullish bias and even signal the start of a summer correction.

I sold my VXX at break even as planned and took profits from oil, which reached my initial $61 target when it first broke out. Not sure if the rally in oil will continue or take a break but a test of its 50 DMA looks like a good place to go long again. Oil prices are a perfect example of how markets price the future while most analysts keep forecasting with old data. Another commodity that looks like it has finally hit bottom is Natural Gas, so I'll give it a shot on the correction.

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

* 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.

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