Elliott Wave Stock Market Update - October 12

The market bounced as expected from oversold conditions but found resistance at previous support in the 2145 area. The bounce was a zig zag and the bearish set up for a strong wave down is in place. In fact shorting at these levels with 2145 as a stop looks tempting. But since support has not broken, it's probably best to continue to be cautious as the market is reaching a sink or swim moment.

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Short Term Trend = Bearish
Medium Term Trend = Bullish trend being challenged

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.