Elliott Wave Stock Market Update - May 4

Last week I stated "If the current bearish wave turns out to be a C wave and it equals Ax1.618 in length, we will see a test of the the 50 DMA around 2040". The 2045 low today technically tested the 50 DMA at 2040 and this might be as low as the market gets in the short term if the current wave is indeed a C. Also, this lower low completes the count I had been following since last week. However, I don't really like the way the 5 count looks despite being technically sound and it might be better to label it a zig zag. The alternative for that zig zag is a bearish 1-2 set up with a strong sell off ahead. I will be get in long with a stop at 5 points below the 50 DMA.

Now with Trump being the presumptive GOP nominee, I hope he will pick John Kasich as his VP. If he does that, at least he can persuade those that lean towards establishment Republicans to vote for him. It would also show that he is not as crazy as he sounds. He needs to win the Midwest to win the election.

http://www.cnn.com/2016/05/03/politics/road-to-270-electoral-college-map/index.html

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 = 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.