Elliott Wave Stock Market Update - June 3

The market failed to follow through on selling today and instead broke out of the descending trendline on the chart. While the short term trend continues to be bearish, these zig zagging waves are pointing to a correction of the larger bullish trend. So unless support breaks in the next bearish wave, chances are the markets are going to stage a rally to new all time highs. Fundamentally speaking, the focus is now on Greece and perhaps that will be the excuse the market will use to make a decisive move.

I am tempted to close my losing VXX position, specially if the 50 DMA holds on the next move. At least my China shares look like they are about to stage another break out, a 10-15% rise and I'm going to start locking in profits. That rally is probably not even half way done but it won't hurt to start position trading.

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.