Elliott Wave Stock Market Update - October 9

Earlier this week I posted the following when resistance broke:

"The market kept rallying today in what seems like a bullish micro W3 and I wouldn't be surprised if 2020 is going to be challenged before any meaningful correction"

Now that 2020 was reached, we can finally see a bigger correction. But since the 5th wave sub-divided into a 5 count, the ideal scenario would be one more push up towards the 2030 area (possibly even 2039) and then a substantial pullback. The next bearish wave is very important as it could be a make or break wave for bearish case for the remainder of the year. In order to stop the bullish impulse, bears would have to bring down the market below 1867-1871 or about 8%. Anything that fails to make a lower low will confirm a bullish bias in the market and could form a base for a sustainable multi-month rally. If the wave from 1847 to 2020 (so far) is W1 of LT 5, then the target is 2,250 assuming no sub-divisions.

I am waiting for the lowest risk/highest reward entry point to short. So I will start buying back the shorts I sold earlier in the week on trade over 2030.

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 per