Tuesday, September 8, 2015

Elliott Wave Stock Market Update - September 8

Hope everyone had a good weekend. Today we saw the strong rally I posted about on Friday and this could be the beginning stages of a larger wave to the 50 DMA or 2039 (whichever comes first).  Confirmation will come when 1993 breaks on the SP500 but the NASDAQ and the RUT might break out first and give us clues as they are leading the rally. Obviously, there is possibility of a breakdown below 1903 but as I said last week, as long as China and Oil are stable, we could see a rally up to the Fed decision on rates.

I ended up selling the China position I bought on Friday at the open as the ETF was pricing a rally to 3300's (closed at 3170).  So that was a quick and easy 10% on this position. Given how much bearish news there are on China right now, I now lean towards calling the correction over as long as 2,850 holds. How this affects the US is anyone's guess. If I am correct, there is going to be a rally past the high this year in the next few months and maybe I can finally call myself retired :)

For further analysis on the NASDAQ, DJI, RUT, Gold, Silver and Oil please visit http://www.ewaveanalytics.com

Short Term Trend = Bearish 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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