Hope everyone had a good weekend. I think a lot of people were expecting the market to crash today after the NO vote in Greece to EU bailout terms, but the market was able to deal with it surprisingly well. We can't see the bearish 5th wave in the cash market but the equivalent of 2040's was tested during the initial reaction when futures opened on Sunday, so for all intent and purposes we are looking at a bounce or even the initial stages of a multi-week rally. As I said on my post last week, while the recent low was expected to be tested (which it did today), the market has been in a correction since May and it is at a point where there's enough of a base for the market to start rallying to new all time highs. There has been quite a bit of damage to the major trends and we have to keep in mind the Head and Shoulders pattern targeting 2000 but if 2039 keeps holding, there will be new all time highs before 2000. I was expecting more of a price correction when it started in May but this has turned out so far into a time correction. If there is a time for bears to make lower lows is this week, time is running out.
I added more to my China positions today with some money I had saved up recently. That market has not been this oversold in 5 years, so it's not a bad time to add. And while I think a bottom is near, nothing is for sure given the huge price swings. I just hope it gets to 5,500 on the next leg up.
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 = Bearish
Long Term Trend = Bullish
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