Elliott Wave Stock Market Update - November 7

Last week I mentioned "The ideal bottom would be in the 2075-2085 range which coincides with the rising 200 DMA so we'll see if that will put an end to the selling until the election results". Today's substantial rally solidified the bottom put in at 2083 on Friday's session and technically speaking this could be the beginning of a multi-week rally. However, everything could change tomorrow if the market doesn't like the results. I ended up closing my longs for a nice profit and I rather not take any risks before the election.

The current odds of Trump winning are around 31% according to Five Thirty Eight, which is a substantial probability and not to be underestimated.

http://projects.fivethirtyeight.com/2016-election-forecast/

The market is expecting Hillary to win so if that doesn't happen there will be a panic sell off and a top for the entire wave structure that started from 2009. For now, not only are the markets favoring Hillary, the short term EW count and technical indicators are pointing to a market pleasing result. Tomorrow we will finally find out who will be the President.


For further analysis on the NASDAQ, DJI, RUT, Gold, Silver and Oil please visit http://www.ewaveanalytics.com

Short Term Trend = Bearish trend being challenged
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.