Tuesday, August 2, 2016

Elliott Wave Stock Market Update - August 2

The market did make a top yesterday as I had suspected and we saw prices sell off to the range mentioned yesterday. This was the strongest sell off in the market since June but this was expected so technically nobody should surprised. At the micro level, I see 5 waves finished at 2147 and a bottoming pattern in place so we could see a bounce towards the Trend Average as soon as tomorrow. Now, since I am counting this correction as a W4, there are several ways the market could evolve in the next few sessions. We could get some sort of Zig Zag to ultimately test the 2134 level, a flat or a one wave wonder where today's low was it. I ended going long in after hours with stops at today's low with the expectation of a counter-rally to test the TA where I might exit again.

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.

Elliott Wave Analytics

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