Tuesday, September 22, 2015

Elliott Wave Stock Market Update - September 22

The Trend Average failed to hold and the bullish option (count/ascending triangle) posted in the past week have been invalidated. So this is now a good opportunity for bears to resume another leg of the sell off that started last month. I have this potentially larger bearish wave labeled as a C wave on the chart I first posted on Sept 18. If bears can gather strength,  we should see 1867 re-visited but ultimately I like 1820 or a bit lower around the 1780 level as a bottom. With that said, the micro-waves from the 2020 top looks like a zig zag so far, so the market must stay under the Trend Average to confirm bearish bias. If the market re-captures the trend, then it just means the market is not yet done going up for the B wave.

I was originally hoping to see the 2039/50 DMA level tested to start short positions but the market fell a bit short. So now I will just wait for a good entry point for longs, hopefully towards the bottom of this C wave.

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
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.

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