Elliott Wave Stock Market Update - October 31

The counter-rallied has continued and is nearing a test of the 200 DMA. As I said yesterday, the main challenge for bulls is recapturing the 2765. A failure to clear this trend pivot will send the market into another sell-off.

Short Term Trend = Bearish
Medium Term Trend = Bullish trend being challenged

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

Elliott Wave Stock Market Update - October 30

The market staged a good bounce today and if the TA is recaptured then the bottom will be in for this phase of the sell-off and prices could go for a test of the 200 DMA currently at 2765. However, if the 200 DMA is not recaptured then the probability of a bear market will increase substantially.

Short Term Trend = Bearish
Medium Term Trend = Bullish trend being challenged

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

Elliott Wave Stock Market Update - October 29

Prices dropped to a lower low today at 2603 and unless the market develops a diamond bottom pattern in the next couple days, the sell-off will continue if not intensify. The market is officially in the negative for the year and has the potential of erasing much if not all of 2017 gains if the current wave ends up being a nested bearish W3. Rising interest rates and the impending impact of trade tariffs on prices are good fundamental reasons for the market for the correction to go much lower.

Short Term Trend = Bearish
Medium Term Trend = Bullish trend being challenged

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

Elliott Wave Stock Market Update - October 26

The selling resumed today and a new low was made at 2628 and puts the index in correction territory. What we will find out soon is whether a bear market is coming (20% decline or more). We should get an idea in the pattern that forms in the next few weeks. I have been waiting for a bear market for a most of the year so maybe it is finally here. I have been accumulating cash since last year so I am hoping to maximize on the opportunity.

Have a great weekend!

Short Term Trend = Bearish
Medium Term Trend = Bullish trend being challenged

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

Elliott Wave Stock Market Update - October 25

The market rebounded substantially today but not enough to erase losses from from yesterday's sell-off. There is enough strength for the bounce to continue and test the Trend Average but whether or not it can overcome it is another questions. If the TA is not recaptured, the selling will continue.

Short Term Trend = Bearish
Medium Term Trend = Bullish trend being challenged

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

Elliott Wave Stock Market Update - October 24

It got ugly today for the market and now the 5th wave on the chart could turn into a W3 if a significant bounce fails to materialize pronto. All gains for the year are now gone and prices could move fast into bear market territory unless the TA can be recaptured. For now is better to stay clear or at least get in when there is a clear bottoming pattern (If you are going long).

Short Term Trend = Bearish
Medium Term Trend = Bullish trend being challenged

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

Elliott Wave Stock Market Update - October 23

Finally, a lower low to mark the bearish 5th wave I was looking for to finish the count. There could be lower lows in the next few sessions but if 2691 holds then the 5-count is finished and now we will see a real rebound. Should selling accelerate and go much lower then what I have as the 4th wave should be labeled a W2 or a B.

Short Term Trend = Bearish
Medium Term Trend = Bullish trend being challenged

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

Elliott Wave Stock Market Update - October 23

Prices closed down today and could continue declining as long as the TA is not re-captured. However, we need to see a stronger bearish wave to confirm the count or else the labels will need to change to reflect a finished count at 2710 with the bounce being a retracement. Whatever the case, the bias continues to be bearish.

Short Term Trend = Bearish
Medium Term Trend = Bullish trend being challenged

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

Elliott Wave Stock Market Update - October 18

Prices closed substantially down as anticipated but it is still way off the lows made last week. If we see prices rally back above 2816 then 2710 will likely be a an important bottom. However, if selling continues in the next few sessions then we should see 2710 challenged and broken to finish up the 5-count posted.

Short Term Trend = Bearish
Medium Term Trend = Bullish trend being challenged

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

Elliott Wave Stock Market Update - October 17

The market closed flat today after a volatile day. Still, the count posted remains in place and I assume selling will start in the next session or two. If last week's low is not tested then I will change the count to reflect the next best option.

Short Term Trend = Bearish
Medium Term Trend = Bullish trend being challenged

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

Elliott Wave Stock Market Update - October 16

I was expecting the market to head down today but I was wrong as prices rallied much higher. Technically, the bearish count is still viable but it would also mean the 5-count was completed at last week's low. Either way, prices remain under the TA and until that changes,  rallies should be considered corrections of a bearish trend proven otherwise.

Short Term Trend = Bearish
Medium Term Trend = Bullish trend being challenged

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

Elliott Wave Stock Market Update - October 15

Prices closed down today but I think the bulk of the selling will come tomorrow or Wednesday. Based on the count, I assume last week's low will be breached to finalize the 5-count posted. The big question is whether this recent move is part of yet another correction of the beginning of the end of the bull market.

Short Term Trend = Bearish
Medium Term Trend = Bullish trend being challenged

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

Elliott Wave Stock Market Update - October 12

Prices counter-rallied today after very strong selling in the last couple of sessions. The count calls for another lower low or at least a test of the 2710 low made yesterday so we will see next week if there will be a tradable bottom in place. I have seen a long term count that calls for one last very bullish leg to new ATH but the market could well go into a bear market now given the fact that prices have more than quadrupled from its 2009 low of 666 without a bear market. Fundamentally speaking, the economy is great right now but trade tariffs, higher interest rates and someone using twitter uncontrollably could bring everything down.

Have a great weekend!

Short Term Trend = Bearish
Medium Term Trend = Bullish trend being challenged

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

Elliott Wave Stock Market Update - October 11

The market continued its sell-off today as expected but the W3 could have ended at 2710. So we could see a bounce in the short-term and then another lower low to finish the count. The selling has been intense and at this pace the market could turn negative for the year. The next significant support level is at 2676 and 2594.

Short Term Trend = Bearish
Medium Term Trend = Bullish trend being challenged

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

Elliott Wave Stock Market Update - October 10

I had been posting the bearish 1-2 count since late September and was almost invalidated last week but if there was any doubt about it, today's action confirms this count. I mentioned a possible test of the 200 DMA yesterday and today's close is just barely 20 point above it (2765) so we could see that test as soon as this week. I thought it was going to take more time for this test but selling today was strong and the strongest since March.

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

Elliott Wave Stock Market Update - October 9

Prices fell slightly again today but one could argue for a bottoming pattern if lows are respected in the next day or two. However, if selling continues and support breaks then we could see prices go much lower, possibly even testing the 200 DMA in the next few weeks.

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

Elliott Wave Stock Market Update - October 8

Prices made a lower low today before bouncing back to close the day basically unchanged. The close was barely above the 50 DMA and if the market starts closing below this level then we should see selling accelerate.

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

Elliott Wave Stock Market Update - October 5

The market broke key support at 2886 and ended testing the 50 DMA before bouncing somewhat towards the end of the session. This breach of support and close below the TA turns the trend bearish and now opens the doors for a bigger correction. One could argue for the end of an intermediate 5th wave at 2940 and if that count is correct then we will see a correction for several weeks.

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

Elliott Wave Stock Market Update - October 2

Not much to add today. The trend continues to support more upside but the pattern looks bearish and we should find out if substantial selling is coming in the next day or two.

Short Term Trend = Bullish trend being challenged
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

Elliott Wave Stock Market Update - October 1

The market had a strong opening today after news of a new trade pact with Canada had been reached but a bulk of the gains were given up at the end of the day. The trend continues to support more upside but the pattern looks bearish and we should find out if substantial selling is coming in the next day or two.

Short Term Trend = Bullish trend being challenged
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