The market followed through on its bearish pattern as I had been expecting and we saw the biggest decline in almost 2 years. A lot of people in the financial media are trying to rationalize why the market is selling off despite the good numbers, but this shouldn't come as a surprise who reads this blog frequently. Now the question is whether the wave today is a W3 or a C wave. I think if we see selling acceleration early next week, then it will confirm a W3. But if prices are able to reverse today's losses, then we should be looking at a C and one more leg to new highs. The key level to watch is the Trend Average as it has proven to be a reliable indicator the great majority of the time. Personally, I'd like to see more downside so I can buy back the stocks I just sold but I am fine either way. Last but not least, support is at 2675-2690, but if that breaks then prices will head for 2600.
Have a great weekend!
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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