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.