The selling continued today after 1857 broke in pre-market and a bottom was found at 1812 before a substantial bounce. However, if 1878 is not reached on this bounce then there is room for one more leg down to a lower low. Considering oil got very close to the $25 level I've been mentioning, one more leg down to test the 2003 low would set up the market for a lower low.
I almost went long today but I rather do this only if oil tests $25 as I want to minimize as much risk as possible. If the bottom has been found already, we should see a rally to test the Trend Average in the next few sessions.
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.
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