Elliott Wave Stock Market Update - September 18

The market has reversed all its recent gains and now finds itself under the Trend Average. Technically speaking the market still has a bullish bias until a lower low is made but the overall structure from the 1867 low looks corrective. Therefore, whether the market has enough strength to reach the 50 DMA or not, the result is the same. So we could see a C (red) wave evolve next week or after another higher high is made that will go back to the 1820-1900 area to possibly end the larger correction. As it is, the C wave (blue) is just 6 points shorter than the A wave so the the bounce has advanced enough to be over.  I am looking to short as close as possible to the 50 DMA or to go long after the C wave is done.

Have a great (last summer) weekend!

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

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.