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
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