Elliott Wave Stock Market Update - August 12

Couple of months ago I mentioned the IHS target of 2200 and how it was going to be interesting to see the market achieve this level particularly during this time of the year. And it is looking like a straight shot from the Brexit lows to the IHS target. The absence of substantial selling pressure is obvious and the best way to count this given the current pattern is an extension of the 5th wave to 2200+. Today's higher low set up another small IHS to just over 2200 and this implies a rally starting early next week as long as yesterday's low holds. I ended selling my shorts for coffee money and didn't go long because I just saw the pattern right now. But if there is an opportunity on Monday, I will be back long again. It's worth noting I haven't had a single bad trade since earlier in the year so maybe my luck will run out soon :)


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.