Monday, February 5, 2018

Elliott Wave Stock Market Update - February 5

What a day. I think it's clear now that we have a W3 in place and there are much lower prices to come. Today's sell-off was the worst in 6 years, erasing all gains made in 2018 and some. While we don't know if the bull market that started in 2009 has finally topped, today's action raises the probability that it is all over for the bull market. I've been saying for months that there are enough waves to call the rally over and maybe what were are seeing it's just the beginning for a bear market that will send prices back to test the 1600 level. Obviously, too early to tell but we'll see.

Prices went through support and the 50 DMA like they were not there. But the next level of support is near the 200 DMA at 2530-2550 and we could see a dead cat bounce from there. Ultimately, a 5 wave count would be ideal of it found a floor at 2425.

For further analysis on the NASDAQ, DJI, RUT, Gold, Silver and Oil please visit

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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