Elliott Wave Stock Market Update - July 24

The market went into a much stronger correction today and closed at support, which eliminates the count I was following for the last couple of days. Instead, we are seeing what could be the potential Inverse Head and Shoulders I posted about last Friday

"At this point, we could see a correction to test the TA or even the 2072-84 area and see an Inverse Head and Shoulders form or a new all time high before any reversals.  The IHS would target 2,186"

If the IHS scenario is correct, the market has to start rallying early next week and the 2,044 low can not be breached. The Trend Average turns bearish with today's close and it must be re-captured next week before it goes back under the 50 DMA. It is a mixed market at this point, with tech correcting from all time highs while the DJIA trades under its 200 DMA. I lean towards bulls re-charging given the world economy but we could see the market go back into a correction again. We'll find out soon.

Have a great weekend!

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 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.