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.