Yesterday I was leaning towards labeling the correction over but today's sell off was firmly bearish. The previous low of 2019 was broken and the close is well below both the 50 and the 200 DMA, unless the market manages to bounce off this range (1990-2020) convincingly, my assumption is lower lows ahead. Still, we have to keep in mind that in the long term picture this could be the C of the LT W4, which implies a bottom will be found and a new extended rally to new highs will come in a LT W5. Also, the excuse for the sell off continues to be oil and like I mentioned the other day, a break of $37 would likely lead to a test of the 2009 low of $32. So a likely bottom, even if temporary, is in sight for oil and that will help equities rally. For now, the best is to stay with the Trend Average and not fight it. I'll go long only if we get close to 1990 and with a 5 point stop.
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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