The market continued its counter rally early morning before reversing gains towards the end of the day. There are enough waves for the market to start a stronger rally but if last week's low of 1857 is breached, then we could see selling continue in the next few sessions. I think oil is one of the main reasons for the sell off and now that $29.50 failed to hold, there is a good chance it is headed towards $25 (today it traded as low as $27.92). Once oil finds a bottom, then there is a better chance for equities to rally to its 50 DMA.
I continue to be on the sidelines and will buy oil or equities once I see a better sign of a sustained bottom.
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
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.
No comments:
Post a Comment