Elliott Wave Stock Market Update - August 31

The market seems has started a correction but so far it is looking like a W4 wave, so we could see one more push up before the entire wave from 1867 does a proper correction. Whatever the case, my expectation is for the 50 DMA to be tested before another substantial sell off around the time the Feds make the decision on interest rates. So far, oil and China have been stable and this should help equities in the next few sessions.

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 = Bearish

* 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. While mechanically trading the posted trends is feasible, keep in mind that these are lagging indicators and as such are prone to whipsaws and I personally do not use nor recommend them to initiate or close positions in the market without taking into consideration other factors.

Elliott Wave Stock Market Update - August 28

The market put in the 5th wave today on the micro-count but there is a possibility it might extend on Monday, so maybe it will challenge the 2000-2010 level before going into a correction. Oil and China has continued to rally strongly and they both help keep markets calm. However, volatility should return in September as the Feds get ready to finally raise interest rates.

I cashed in on the stocks I bought couple of days ago since they're up quite a bit and will probably buy them again on the pullback. I get the feeling the market wants to visit its 50 DMA in the next couple of weeks. Last but not least, the death cross in the SP500 is official as of today.

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 = Bearish

Long Term Trend = Bearish

* 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. While mechanically trading the posted trends is feasible, keep in mind that these are lagging indicators and as such are prone to whipsaws and I personally do not use nor recommend them to initiate or close positions in the market without taking into consideration other factors.

Elliott Wave Stock Market Update - August 27

The market rallied easily past resistance today and confirmed the the double bottom. However, the long term trend turns bearish today and this is the first time it has done so since 2011. Most visitors to the blog have only known the system I use as a "bullish" system but from now until that long term trend turns bullish again, every rally will be viewed as a counter-trend rally. And it's not that I am personally bearish or bullish, the trend system is there to provide us with situational awareness. Not knowing what the major trends are doing is like going sailing without first checking the weather and wave conditions. With that in mind, the first leg of the counter-rally seems to be nearly complete and I'll assume it's part of a B wave that might go all the way back up to challenge the 50 DMA. Now that China seems to be stabilizing and oil has confirmed a bottom, the focus will be on the Feds and their meeting won't come for another 2 weeks. So, stability might elevate the market for a while before another downturn.

And speaking of oil. There's a very good chance the counter-rally will go back up to test its downtrending 50 DMA currently at $49 (WTIC). I actually issued a recommendation just yesterday on oil on the EWA site and it rallied 10% today.

"Oil has finally shown a potential reversal pattern after declining without much of a break for almost 3 months. Aggressive traders can open long positions with $37.75 as the stop loss. Odds favor a strong counter-rally given how oversold Oil is at the moment."


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 = Bearish

* 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. While mechanically trading the posted trends is feasible, keep in mind that these are lagging indicators and as such are prone to whipsaws and I personally do not use nor recommend them to initiate or close positions in the market without taking into consideration other factors.

Elliott Wave Stock Market Update - August 26

 

The market seems to have put in a firm double bottom at 1867 and a break of 1954 resistance tomorrow would confirm it. The count is complete with a truncated 5th in the cash market (or a normal 5th if after-hours is taken into account). Assuming this is a LT W4 count, I'm going to label the recent decline an A of a possible zig zag or a triangle. Obviously, it could develop into a more complex correction or shoot straight up to new highs as the correction target area (1820-1900) I mentioned last week has been met.

I am posting couple of charts to give an overall perspective of the recent decline. As you can see, there isn't really nothing out of the ordinary at this point and the assumption should be this is a correction within a bull market. With that in mind, the long term trend signal will likely turn bearish in the next couple of days and the current bounce is more likely than not a B wave. Depending on how high the counter-rally goes, we could see an equally powerful C wave that will end up challenging the 1820 level or even go below it.

Lastly, I added to my China shares today given the steep decline there in the past few days. I'll probably position trade this particular lot depending on how strong the coming counter-rally is.

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 trend being challenged - change imminent

* 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. While mechanically trading the posted trends is feasible, keep in mind that these are lagging indicators and as such are prone to whipsaws and I personally do not use nor recommend them to initiate or close positions in the market without taking into consideration other factors.

Elliott Wave Stock Market Update - August 25

Today the market had one of the biggest sucker's rally in recent years before reversing for the bearish 5th wave as expected. At this point, the count could be completed with a truncated 5th at 1867 support but if that breaks, it will get ugly tomorrow in a bearish W3 of the W5. I continue to like 1820 if support breaks but looking at the pattern, we could see 1800 tested. Whatever the case, I'm ready to play the bounce once I feel confident the count is completed. There's panic in the market and like I said yesterday, the only thing that can stop the sell off are key support levels so place your stops accordingly.

China had its worst day in years yesterday in what I believe to be the W3 of a C. If the count is correct, then global markets should start to stabilize in the next week or two. IMO this is a buying opportunity not only in China but almost everywhere. But for now, it's pure bearish hysteria so enjoy/profit while you can!

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 trend being challenged - change imminent

* 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. While mechanically trading the posted trends is feasible, keep in mind that these are lagging indicators and as such are prone to whipsaws and I personally do not use nor recommend them to initiate or close positions in the market without taking into consideration other factors.

Elliott Wave Stock Market Update - August 24

 
"Basically, 2039 needs break for a stronger correction to begin"

This is a classic example of key support breaking and all hell breaking loose. The market had been supported by that key pivot all year long until it finally broke last week. And despite all the panic and hysteria, there was ample warning  something was not right with the death cross in the DJIA and lower lows being put in weeks ago. This correction is lining up well with the LT W4 count and today's lows reached the target area I mentioned last week of 1820-1900. Looking at the short term count and support levels, I can see one more leg down to challenge 1820 since 1905 broke. I'll probably pick up some shares if 1820 gets tested to play the bounce. With that said, if you are planning to go long, watch those support levels and place your stops accordingly. Panic/Manic markets do not care about oscillators.

The catalysts for this sell off are a combination of rate hikes, China and oil. None which are fundamentally damaging to the economy imo (damaging to profits yes since it raises cost of capital to companies), so this is mainly a sentiment driven sell off. Rate hikes implies Fed's confidence in the economy, oil's low prices are essentially a tax cut for oil importing countries and China's 8-9% sell off is just panic selling unrelated to the overall health of its economy. In fact, I have some more money coming in (for my long term account) this month that I will be putting in China shares. The lower prices go, the more I can buy.


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 trend being challenged - change imminent

* 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. While mechanically trading the posted trends is feasible, keep in mind that these are lagging indicators and as such are prone to whipsaws and I personally do not use nor recommend them to initiate or close positions in the market without taking into consideration other factors.

Elliott Wave Stock Market Update - August 21

Finally some excitement in the market! After being stuck in the 2040-2134 range for most of the year, support broke yesterday and selling accelerated as I had expected. I heard on the radio today was the worst day for the DJIA in 4 years, which puts into perspective just how much the market has gone up since the low in 2011. All this time the market had respected key trend support but that level broke today and this confirms the top of LT W3 label on the long term chart. I remember when I first started to project the LT count the targets seemed too high but all the waves completed without a single exception and targets proved accurate (give or take a few percentages). Come to think about it, it's actually amazing a market can follow patterns for a period of years. The last time the LT chart was updated was in December and I'll do the Fib retracement labels early next week to bring it up to date.

Now that the top in May is confirmed, we should be looking for a bottom for the correction. I mentioned a few days ago the 1820-1900 area looked like an attractive target and today that possibility looks very feasible. The short term count looks to me like it's not over, so I am assuming there will be a bounce before another lower low. As it is, the market closed right at support and if this level doesn't hold on the next bearish wave, the next level is 1905. Obviously, it's hard to tell when the bottom will happen but I suspect when the foaming-at-the-mouth permabears get paraded by the media, that will be around the time the bottom will be in. Similar to the case with China right now, while more downside is possible in China, there's a good chance a bottom is getting close with all the "expert" doomers all over the place. So be on the look out for the likes of Marc Faber, Prechter with his DOW 1000, Harry Dent, etc.


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 trend being challenged - change imminent

* 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. While mechanically trading the posted trends is feasible, keep in mind that these are lagging indicators and as such are prone to whipsaws and I personally do not use nor recommend them to initiate or close positions in the market without taking into consideration other factors.

Elliott Wave Stock Market Update - August 19

The ups and downs continue and we are now getting close to September and the market continues to trade in the same range as it has all year. Basically, 2039 needs break for a stronger correction to begin, otherwise this sideways action could arguably be a time correction. At the same time, the market needs to break out of the 2134 resistance if it is to reverse the imminent death cross coming in the next week or two. And to be clear, a death cross is a lagging indicator and there has been cases where the lows where already in by the time this event happened. However, more often than not, a death cross happens before new lows are in and with the historically worst month for the markets approaching (September), there's a good chance things will get very bearish.

I might be at Disney's California Adventures tomorrow, so again I might miss the update as an entire day out in the sun and making long lines drains me. But at the end of the day, seeing your child happy is priceless.

For further analysis on the NASDAQ, DJI, RUT, Gold, Silver and Oil please visit http://www.ewaveanalytics.com


Short Term Trend = Bullish trend being challenged
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. While mechanically trading the posted trends is feasible, keep in mind that these are lagging indicators and as such are prone to whipsaws and I personally do not use nor recommend them to initiate or close positions in the market without taking into consideration other factors.

Elliott Wave Stock Market Update - August 17

The market is making things complicated by closing above its 50 DMA and re-capturing the Trend Average with today's rally. I don't picture a 5 wave count rally to new ATH but it's good to keep the possibility in mind given the bullish set up so far. We'll need to see more than a marginal new ATH to reverse the likely death cross coming to the SP500.

Tomorrow I will be in Disneyland all day so not sure I'll have time to update. I'll do my best to at least post a chart later tomorrow night.

For further analysis on the NASDAQ, DJI, RUT, Gold, Silver and Oil please visit http://www.ewaveanalytics.com


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. While mechanically trading the posted trends is feasible, keep in mind that these are lagging indicators and as such are prone to whipsaws and I personally do not use nor recommend them to initiate or close positions in the market without taking into consideration other factors.

Elliott Wave Stock Market Update - August 14

I'm going to make this one short since I had a busy day enjoying the summer here in So Cal. Basically, the market is making it harder to label the waves in the past couple of weeks by challenging the bearish trend. It'd be a lot easier if there was a strong sell off next week in all indexes but I get the feeling it's not going to be that easy. I guess after rallying almost 4 years, it's not easy for bulls to give up hope. And who knows, they might be able to pull a miracle but I wouldn't bet on it.

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 trend being challenged
Medium Term Trend = Bearish

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. While mechanically trading the posted trends is feasible, keep in mind that these are lagging indicators and as such are prone to whipsaws and I personally do not use nor recommend them to initiate or close positions in the market without taking into consideration other factors.

Elliott Wave Stock Market Update - August 13

The market made a higher high today to test the Trend Average before going back down. I didn't want to label the waves before seeing the next move to get a better idea. A strong sell off tomorrow would make things easier as far as labeling goes but if the downsloping trendline is broken then it will open up bullish scenarios (As bullish as you can get with an impending death cross). Looking at possible targets for a potential bottom to a correction, I like the 1820-1900 support area which is about a 10-15% correction from the May high.

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

* 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. While mechanically trading the posted trends is feasible, keep in mind that these are lagging indicators and as such are prone to whipsaws and I personally do not use nor recommend them to initiate or close positions in the market without taking into consideration other factors.

Elliott Wave Stock Market Update - August 12

The market made a lower low and changed the count I was following. Now that the trend is solidifying to the downside, I have to see what is the best count for the overall structure. Overall, the waves don't have an "impulsive" look to them due to all the zig zags/abc counts, including the wave today which staged a major reversal. But this is an inherent predictive flaw in wave theory (assuming 5 counts are always impulsive and zig zags are not), so I have to see what is the most likely overall count now considering there is a good chance of more downside ahead. The SP500 looks like it will have a death cross in the next week or two as well and we can start speculating for bottom targets once these waves are deciphered. Below is the chart I posted couple of weeks ago on the longer term count and tomorrow I will change the labels to reflect the likely LT W3 top the Fib targets.

Lastly, the recent change in sentiment is tied to the Chinese remimbi (or yuan). Which I think puts the Fed in a difficult spot. Up until Monday, the yuan was essentially pegged to the US dollar and had shared the burden of the appreciating dollar with the expectation of rising interest rates in the US. But now that they have decided to essentially go with the market and let the dollar do its own thing (like Japan, Europe and pretty much everyone), the US dollar finds itself alone and with strong market pressure to continue to appreciate. After all, why would Europeans, Japanese and countries with weaker currencies not buy dollars and park their money here now that interest rates are going higher here than in their QE/0% interest rate home banks. The Fed has to figure out how to fight this flood of foreign currency into the dollar as the more the rates rise, the stronger the dollar will become. As citizens, we get more purchasing power abroad (time to go on vacation!) but this leaves multi-nationals and export dependent businesses in a tough spot.

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

* 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. While mechanically trading the posted trends is feasible, keep in mind that these are lagging indicators and as such are prone to whipsaws and I personally do not use nor recommend them to initiate or close positions in the market without taking into consideration other factors.

Elliott Wave Stock Market Update - August 11

The market sold off today but found support at 2076 before counter-rallying towards the end of the session. If yesterday's wave was a bullish W1 then we should see the start of a bullish W3 as soon as tomorrow. However, if the bullish count assumption is wrong then we could see a strong sell off wave in the next few sessions that will fall through all major support levels, specially 2039. The DJIA officially has a death cross (the media hasn't picked up on it but I'm sure we'll see people talk about it soon), again a first in 4 years and the assumption is lower lows are coming on that index and eventually all markets will end up following. The question now is how long will it take to reverse that death cross, the last one occurred in August 2011 and was not reversed until February 2012. If this is a LT W4, we might see a similar or shorter time frame. Lastly, now that China has decided to de-peg from the US dollar, a strong currency will be a drag on the US economy and its multi-nationals. This scenario lines up well with a LW W4 count, a stronger correction but not a bear market. Maybe a 10-15% correction at last?

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

* 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. While mechanically trading the posted trends is feasible, keep in mind that these are lagging indicators and as such are prone to whipsaws and I personally do not use nor recommend them to initiate or close positions in the market without taking into consideration other factors.

Elliott Wave Stock Market Update - August 10

The market has rallied as expected and this could be a bullish W1 going by the current count. As I posted last week, the market is free to go for a new all time high after the correction. However, the imminent death cross in the DJIA will take a monumental bullish effort at this point. The DJIA has not seen a death cross since 2011 and this could be a signal of a major trend change in the broader market. Obviously, this signal could get whipsawed as any other market average signal. However, probabilities are on the high side there will be lower lows to come in the industrial index and my assumption is the SP500 will eventually be dragged by it. Whether this correction period turns into a bear market is another question but given the relentless uptrend for the past few years and the fact that waves are nearly complete, perhaps LT W4 is finally here.

Lastly, here's an article I just read that picks up on the notion that industrials will drag down the entire market.

http://www.forbes.com/sites/johntobey/2015/08/10/bear-market-probability-just-increased

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

* 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. While mechanically trading the posted trends is feasible, keep in mind that these are lagging indicators and as such are prone to whipsaws and I personally do not use nor recommend them to initiate or close positions in the market without taking into consideration other factors.

Elliott Wave Stock Market Update - August 7

The market seems to have completed a 5 wave count to a lower low at 2067, which is just barely above the critical 2064 level. The wave count on the SP500 continues to point to more upside ahead but the situation in the DJIA paints a completely different picture and it is starting to look doubtful the technology sector will be able to maintain its most recent bullish momentum. In all, market trends are proving to be more accurate in predicting direction and a breach of 2064 will solidify the bearish trend. Which brings up the possibility of a recession, if you believe the stock market is a predictor of recessions.

"Should a recession come during Obama's last year, Jeb Bush will be the new President imo."

Which I posted last year (Before Jeb Bush announced I might add) . And looking at the debate from last night, I think J Bush has a good chance of pulling it off as he seemed experienced and Presidential. Most of the other candidates seemed competent but not all looked electable. I think in order for the GOP to win, they have to have a nominee who will appeal to the center and independents. I for one, can not vote for someone like Hilary because I don't like her economic beliefs or her populist talk. At the same time, I can't vote for a right wing nut whose priority is to move the US embassy to Jerusalem on his first day as President (how is that of any national interest is beyond me). So here are my impressions from last nights debate, which is the first time I've heard any of them talk with the exception of motor mouth.

Huckabee - Decent man, great closing, has specific plans but probably too socially conservative to get my vote
Ted Cruz - Foaming-at-the-mouth right wing nut
Rubio- Strong closing, looks too young, has a bad record of personal finances
John Kasich - Strong closing, sounds decent, has a shot
Ben Carson - First Doctor to separate co-joined twins at the head, not as bad as the leftist media paints him to be
Gov Christie - I like this guy but need to research more
Rand Paul - I actually agree with him on a lot of things, probably more than everyone else but he doesn't look like he can win
Scott Walker - Competent, looks young, not sure he has enough experience
Jeb Bush - If he is more like his dad than his brother, I'd probably vote for him. Admitting the war in Iraq was a mistake is a step in the right direction
Trump - Opportunistic, manipulative, megalomaniac. If the GOP loses 2016 it will be thanks to this man, who interestingly enough was a lifelong democrat up until 2010.

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 = Bearish

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. While mechanically trading the posted trends is feasible, keep in mind that these are lagging indicators and as such are prone to whipsaws and I personally do not use nor recommend them to initiate or close positions in the market without taking into consideration other factors.

Elliott Wave Stock Market Update - August 6

The market sold off today and found a bottom at the 2072-2084 support range, which is not all that unexpected given the wave structure. Had the first wave from the correction been a clear 5 wave count, today's sell off would have been labeled a bearish W3. But since we had a zig zag on the first bearish leg, this whole correction is looking like a double zig zag so far and would imply a bullish rally as soon as tomorrow. Now, going by trends alone, the markets have deteriorated considerably since the correction in May started and we should see a death cross in the DJIA in the next couple of sessions. The implication is a significant top is now likely in the DJIA and the SP500 is looking like it is headed the same way, so if the SP500 is going to make a new high, we will need to see strong momentum to reverse all the recent bearish damage. This is a good  example of waves vs trends and we should see the conclusive outcome in the next week or two. Personally, I think it's time for the LT W3 to top, question is do we get one more high or not.

Lastly, we might see the next President of the US at the debate tonight so I am tuning in. I think Jerry Springer should have been to host tonight since Trump will be involved. I highly doubt Trump will be in the White House anytime soon but I've learned not to underestimate general stupidity..

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

* 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.

Elliott Wave Stock Market Update - August 5

The market had a strong opening today that challenged its most recent high before losing most of its gains the rest of the day. Looking at the waves, the market could be continuing its correction or this is part of a nested bullish 1-2. Seems like the weaker ADP jobs report is being interpreted as a sign that the Fed will not be raising interest rates soon, so the guessing game continues.

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.

Elliott Wave Stock Market Update - August 4

The market has continued its correction with today's negative close and we could see another down leg tomorrow if this a double ZZ. The market has been stuck in this range for much of the year but I think we will finally see a strong move either way in the next few weeks. So far, this has been the most uneventful year for the SP500 since 2004. Either the SP500 is pulled by tech to the upside or is dragged down by industrials (which has a very bearish looking H&S).

Lastly, it looks like the low for oil will be re-tested soon so I might do a short term trade when it gets there.

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.

Elliott Wave Stock Market Update - August 3

As expected, the market continued its correction and it seems like a zig zag bottomed at 2087. It's still too early to tell if this will turn into a double zz or will start rallying to new highs but I assume we will find out in the next few sessions. Also, with today's close the Trend Average goes bearish but considering the 5 count and the zig zag so far, it looks like the signal will be reversed soon. Lastly, the sell off in oil continues to affect the energy sector which in turn drags the DJIA. A death cross on that index is imminent at this point and it will be interesting to see how the broader market deals with this as I don't think I've seen major indexes diverge in a very long time.


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.