Elliott Wave Stock Market Update - October 2

The market sold off early morning after a disappointing jobs reports but then made a huge reversal to end up the day in the 1950-1955, the target resistance level I've been favoring since the rally started. And now that this level has been reached, the market is at a critical point since this is a resistance level that must be cleared to start confirming the end of the correction. The likely path IMO is a bearish wave early next week to test 1908, what happens then will probably decide whether the correction is done or not. Alternatively, if bulls manage to break resistance earlier in the week without pulling back then it will be a sign of strength and the market could head straight to the 50 DMA. Today's close turns the Trend Average bullish.

I ended up closing the rest of my long positions I bought at the low earlier in the week and went short in the very last minute when the market hit 1951. My stop is 1956, so not risking much relative to the potential gain.

Have a great 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.