Elliott Wave Stock Market Update - August 5

The market reversed its short term bearish bias and closed at a new all time high after a jobs report blowout. With this new high, the Trend Average turns back to bullish and the chances of the 2134 gap being tested appear slim before the completion of the entire structure from the Brexit low. On Tuesday I posted "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" and it looks like the correction on Tuesday turned out to be a one wave wonder after all.

I will buy back my longs on the coming correction. There is a good chance of another Inverse Head and Shoulder's forming using the pre-market high I mentioned on Monday as the neckline so this set up would be a no-brainer. Last but not least, I think I have all the parameters for the account I am going to set up to trade against the S&P 500 and I will make a separate post on this later. So many people say it's impossible that this to me is the ultimate challenge.

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.