Elliott Wave Stock Market Update - September 19

Prices rallied early in the morning to test the TA but reversed course for the rest of the rest of the day. Unless the market is able to rally past 2163 in the next few sessions, the 2119 lows are going to be tested again for the fourth time. The market is undecided and needs an excuse for the next substantial move. The Feds have to raise rates sooner or later but given Obama's luck, we might see rates rise only after the elections. Once rates start to rise we should see a recession within a year or two and then we will find out the consequences of keeping rates so low for so long. My guess is we will see a big correction in all asset classes, specially equities and real estate.


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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.