Elliott Wave Stock Market Update - May 16

The sell off was effectively stopped right at support and the bearish count has been eliminated. Most indicators pointed to lower prices at the end of last week but I guess there are plenty of buyers at the 50 DMA. We could see another bearish wave to test the 2045-2050 area again but it might just get to 2053 and head back up. So far this has been a time correction given the limited downside since the 2011 top almost 4 weeks ago. I will go long on the retrace and place stops at support.

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Short Term Trend = Bearish trend being challenged
Medium Term Trend = Bullish

Long Term Trend = Bullish

* 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.