Elliott Wave Stock Market Update - July 22

The market rallied towards resistance as expected but was able to clear it and close the day marginally below its all time high. While a bearish pattern remains in place, a minor break of all time highs will signal the 5th micro-wave is still not done. I was tempted to short the market at resistance but looking at the impulsive look of the wave I refrained from it. I don't short impulsive waves or break outs, no need to be masochistic about it. The Trend Average has caught up with the market and we should see a stronger move fairly soon.

Lastly, I wanted to add that I watched the Donald speak last night. He is usually busy fighting or insulting people but he had a chance to speak to the public like a normal person. While I am no fan of Trump, I think he is going to do the unthinkable and win this election. He is a talented speaker and his delivery was effective. He is able to move the public with his populism and nationalism and since he is running against Hilary, it will be easy for him to portray her as a failure. So it looks like Trump will be getting the blame for the coming recession and mark my words it is coming sooner than later.

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 = Bullish
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.