Tuesday, September 29, 2015

Elliott Wave Stock Market Update - September 29

A lower low was put in today at 1871 and this qualifies better as a test of 1867, so I think we will see the Trend Average tested as long as support keeps holding. A potential target for the counter-rally is again the 1950-1955 area and I wouldn't be surprised to see a neckline for an IHS form again. If the bounce does get to that level and we get another 5 waves down equal in length to thr 2120-1871, then the target would be around 1800.

I started to go long today near the bottom and my stop is 1867. I am also considering buying some beaten down companies but I'll probably wait until the correction is over for that as I'd like to hold them. I'm thinking Exxon, Gazprom, and adding to my position on Chinese banks. These companies btw are some of the 10 most profitable companies in the world but they are trading very cheap and paying high dividends.

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 = 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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