Elliott Wave Stock Market Update - July 27

The 2072 support level was broken early today and we might see the 2055 area tested on one more bearish wave. If we get a bearish 5 count then we could be looking at an A or a bearish W1, which would imply accelerated selling in the weeks ahead. I am still expecting bulls to come back but now pressure is mounting on the most recent uptrend and a new rally has to take place soon or else the market is at risk of rolling over.

The catalysts for the continued selling today was China and commodities. And I am assuming there will be ongoing turbulence for a while, so we'll see how equities will handle this in the next couple of weeks.

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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.