Prices failed to hold at support and sold off to break the low made last week as expected. The least bearish scenario would be a zig zag from the top to test 2407 and then rally again to new highs. But if 2407 fails to hold the selling, then this will be headed towards a 200 DMA test, currently at 2345. I sold my gold position today and looking to go long in equities when prices reach support or show a bottoming pattern. As I said yesterday, the market has plenty of excuses with all the Trump drama. But in the end, this correction was expected and Trump is just an excuse. What will be interesting is what will send the market into a real correction (the one that will send prices to the 1575-1800 area). I have always assumed a recession is what will ultimately bring down the market but there is now a chance that it will be a big Trump related event.
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
* 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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