The counter-rally was able to continue today and it now seems like a bottom has been found. There is an Inverse Head and Shoulders targeting 1978 and a clean break of 1900 would confirm this move. As I mentioned yesterday, oil finding a bottom was key to a rebound in equities and so far it looks like a bottom has been found in oil as well (oil is trading close to $30). With that said, the trend continues to be bearish and the market has a lot of rallying to do before reversing all the bearish damage done this month.
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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