Elliott Wave Stock Market Update - August 10

The count was finished yesterday as I had suspected and we will now see if this is going to be a stronger correction that will end up going below the 2147 low from last week. Obviously, I'd like to see the Trend Average turn bearish to confirm a deeper pullback. Also, one possibility we have to keep in mind is the Inverse Head and Shoulders I mentioned last week which is using 2185-2187 as the neckline. The top yesterday at 2187 produces the perfect neckline if you use the cash equivalent high made couple of weekends ago. So failure to go below 2147 will result in a strong wave to 2200+.

I remain in cash and see how the correction evolves in the next few sessions before going long again. Oil btw is creating a good risk/reward set up so I might go long there too.

For further analysis on the NASDAQ, DJI, RUT, Gold, Silver and Oil please visit http://www.ewaveanalytics.com


Short Term Trend = Bullish 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.