The market ended up below 2600 as I had been expecting and the real test will come at the 200 DMA. If the count is correct, we should see a strong bounce off the 200 DMA to possibly challenge yesterday's high at 2727. However, if the count I have posted is not correct, then we are looking at severe selling in a W3 that will go well below the 200 DMA and send the market into more than just a correction. Technically, prices are already in correction territory, what we haven't seen since 2009 is a bear market, defined as at least a 20% drop from the peak. I will go long if I see signs of a bottom around the 200 DMA. Many people continue to sound surprised at this drop, including Trump himself (who foolishly was taking credit for the recent rally). But this has never been about the President, it's about the economic cycles and the waves in which the market navigate.
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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