Elliott Wave Stock Market Update - September 25

The market went straight to the 1950-1955 area I mentioned yesterday but hit a brick wall there. Assuming the bearish count is correct, we will see 1903 tested early next week. With that said, there is also an Inverse Head and Shoulders targeting 1990 if the high today was a bullish W1, so bulls still have a chance of clearing overhead resistance.

The market seems to have taken the news of a rate hike fairly well but with the potential government shut down coming up, there are plenty of excuses to sell. The fact that John Boehner is resigning is a sign that the extreme right of the Republican party is not going to make discussions to fund government easy. Things could get interesting next week.

Have a great weekend!

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Short Term Trend = Bearish
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.