The market went right through the 2039 market support early morning and ended the day near the next support level in the 2020 area. I am not ready to label the waves until I see what the market does on Monday but one could argue for a completed ABC from the 2016 top. However, if selling accelerates on Monday breaking below 2000 then the wave today is part of a bearish W3. And again, the selling should not come as a surprise after a 12%+ rally in 5 weeks. If selling gets out of control the we'll evaluate the bearish options.
I was originally hoping to short but since selling ended near support, I had to go long towards the end of the day to play the bounce.
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 = Bearish
Medium Term Trend = Bullish
Long Term Trend = Bearish trend being challenged
* 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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