The market continued its sell off as expected but the 2013-2019 level was not able to stop the selling and instead the market had a very bearish end of the day close at 2005. Still, until 1993 is breached, there is still the possibility of a Christmas rally taking place next week. If sellers are able to break support then selling will probably accelerate. I went long as planned at 2020 and got too comfortable and did not place a stop after seeing the initial bounce from 2013, so I will be adjusting it next week to 1993.
The focus is again oil prices and as I said a few weeks ago there is a good chance the $32-33 level will be tested before a substantial counter-rally. Considering the close today was $34.50, a bottom (even if temporary) is coming soon and that should help equities. However, in the overall scheme of things, low oil prices benefits consumers and I've personally saved about $1000 this year compared to what I used to pay ($4-4.25 p/g) before the oil crash. And where it gets better is one can get a portion or all of those savings and give it to your favorite charity and still get a deduction for it! Regardless of what bears say, the economy is doing well and this is the time to give something back to those who are not as fortunate.
So if you had a good year and are able to give, here are some good charities.
http://www.aspca.org/donate
https://donate.salvationarmyusa.org
http://www.redcross.org
https://donate.doctorswithoutborders.org
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 = Bearish trend being challenged
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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