Well, if there was any questions as to why I was avoiding longs in this market, today is why. There are enough waves in place and it's May, so it should not come as a surprise to anyone who has been on this blog that there is a tendency for equities to peak around this time. The close today turns the TA bearish and the close was well below the 50 DMA. We might see a counter-rally towards resistance at 2380 soon but I am looking at 2250-2280 as initial possible target for a correction. Whether or not there will be one more leg to new highs after the correction is open to debate but for all intent and purposes, the entire structure that formed in 2009 has enough waves to call itself done. And as much as Trump is in the news, the sell-off today was destined to happen, he is just the perfect excuse.
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
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