Elliott Wave Stock Market Update - August 26

The market gapped up early morning but went lower to test the support area I mentioned yesterday as expected. The previous bullish set up is obviously gone, however the pattern is looking like a complex correction with support in the 2155-59 area. How the market reacts when the Trend Average is challenged should provide us guidance for the next few weeks. Failure to recapture the TA will lead to lower lows but if prices are able to turn the TA signal to bullish again then we will see new all time highs. I ended up buying back the longs I sold yesterday at 2161 and my stop is 2160.39 or today's low.

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 = 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.