What a week! The sell off has continued despite a bounce in China and what seemed like an extended 5th wave yesterday is looking like a 3rd wave. The next significant level of support and a nice level to play a bounce is the 1867-1871 area. However, there is still the possibility the selling is complete since oil is testing the $32 level as I speculated a few weeks ago and likely to produce a strong counter-rally to its 50 DMA.
The safest thing to do now is pay attention to the trend and stay with it until a low risk/high reward set up is found. I did however buy some Russian and Chinese H shares yesterday for my long term portfolio.
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
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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