Friday, June 19, 2015

Elliott Wave Stock Market Update - June 19

The market pulled back as expected today and we should see a decisive move in the next few sessions that will set market direction for the rest of the summer. Again, the 2120-2125 level offers strong resistance and if bulls can clear that then we should see a rally for few weeks. But if that level holds and the market goes back under the Trend Average, we should see a test of the 200 DMA (2050) at a minimum. Bullish factors to consider going into the weekend is the new daily MACD cross and the fact the TA turned bullish today.

The Greece situation could provide a catalyst to investor sentiment in the next few weeks. Also, China is making a correction already so maybe that could affect sentiment as well? I am holding on to all my positions and considering a position trade on my China shares. I am tempted to switch my China A shares for HK traded H shares, which are substantially undervalued. At this point the best possible outcome is an H&S formation in China so I can exit on the right shoulder and then buy back 15-20% lower. I made it as close as 91% to my retirement goal but now I'm back to 80%. I'm hoping I can get this done by this year, we'll see.

Have a great weekend!

For further analysis on the NASDAQ, DJI, RUT, Gold, Silver and Oil please visit

Short Term Trend = Bullish
Medium Term Trend = Bearish trend being challenged
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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