Elliott Wave Stock Market Update - May 20

The market managed a decent bounce today that could be setting up the market for a new rally as long as yesterday's low holds. It would still be good to see the 200 DMA at 2012 tested but there are enough corrective waves in place to call for an end of this multi-week correction. With that said, looking at the patterns on a daily chart, I see a potential Head and Shoulders targeting 1970 so that has to be taken into consideration as long as the short term trend remains bearish. I will go long early next week if I see corrective waves to 2039.

Have a great weekend!

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Short Term Trend = Bearish
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.