Elliott Wave Stock Market Update - December 31

The market ended the day on a positive note but was down substantially for December and for the year, a rare down year since the financial crisis. People have been so used to seeing everything go up that some have seem to forgotten that assets can go down too. I am sure 2019 will be interesting and hopefully it will provide us plenty of opportunities regardless of whether your are a bear or a bull.

Happy New Year!

For further analysis on the NASDAQ, DJI, RUT, Gold, Silver and Oil please visit http://www.ewaveanalytics.com

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

Long Term Trend = Bearish

* 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 - December 28

The market continued its bounce today and closed challenging the Trend Average. However, we should see prices drop substantially next week to a lower low if the count is correct. If prices are able to keep rising and recapture the TA then we could see prices headed towards the 50 DMA challenge sometime in January. We'll see if Monday repeats what happened on the 24th.

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 trend being challenged
Medium Term Trend = Bearish

Long Term Trend = Bearish

* 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 - December 27

Volatility was substantial today and wild moves could continue in the next few sessions. The TA is being tested and should prices overcome this level then the bounce has a chance of gaining traction to move towards a challenge of the downtrending 50 DMA currently at 2673.

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 = Bearish

Long Term Trend = Bearish

* 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 - December 26

The market staged a strong comeback today in one of the best days in years. But given the steep sell-off last week this shouldn't really come as a surprise. Despite the strength of the rally, the TA is not close to being tested yet so this might end up being a Christmas sucker rally when there are no more bag holders left.

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 = Bearish

Long Term Trend = Bearish

* 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 - December 24

The selling has continued as expected, making today the worst Christmas Eve trading ever and possibly making this the worst December ever as well as the markets are all officially in bear market territory, the first one since 2007. It's interesting everyone is trying to rationalize what is causing the plunge since there are a multitude of factors. But I think the most simple explanation is that fact that the markets are predicting a recession soon. Just look at oil prices, it has plunged -45% in just 2 months! If a recession is indeed coming then we will see oil prices down in the 20's.

Bear markets have been non-existent in the US for the last 10 years so many people haven't even seen one. The average drop during a bear market is -30% and they last on average 13 months. The last bear market we had was in 2007 and prices plunged 57% then and took 49 months to recover. How long will this one last is anyone's guess but going just by wave measurement, this first leg has a target of 2250 if it is a traditional 5 wave structure. In the long run, I think a drop to the 1600-1800 is reasonable and a good place to load up for the long term. I will be wiring my passive funds into my trading account in the next few days and start trading the counter-rallies. I guess this is my Christmas present since I have only been long silver for the last few months :)

Merry Christmas!

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 = Bearish

Long Term Trend = Bearish

* 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 - December 21

Earlier this week I posted:

"If the 2530 low is unable to hold selling and support is broken convincingly then we should see the wheels come off this market and probably go into bear market territory in a matter of weeks."

The market had the worst week in 10 years and the lack of significant support levels gives the bears room to push the market much lower. The NASDAQ and the RUT are already in bear market territory so the SP500 should follow soon unless there is some sort of miracle. I guess this is bad if you are long but for those that have been shorting or waiting for the bear market, this is a good time. As I've said for years, the trend is your friend and hopefully we will be enjoying the fruits of patience in 2019 or 2020. The one thing that concerns me is the coming recession. It's hard to predict the severity of it so hopefully it won't be too bad and will just reset all the excesses that low interest rates have brought to assets in the last 10 years.

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 = Bearish

Long Term Trend = Bearish

* 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 - December 19

The market has continue to sell off and a new low at 2488 was made. This break of support could turn into very strong selling in the near future. Technically speaking, there isn't much support at these levels so prices could easily go to 2200-2300's in a matter of days. No Santa this year.

Short Term Trend = Bearish
Medium Term Trend = Bearish

Long Term Trend = Bearish

* 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 - December 18

A lower low was made today at 2528 and the lack of conviction in today's bounce shows there is more room for downside. If this level is lost, we could see a sell-off like we haven't seen in many years during Christmas week. I guess not even Santa is saving the market this time.

Short Term Trend = Bearish
Medium Term Trend = Bearish

Long Term Trend = Bearish

* 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 - December 17

The selling has continued and the 2532 low I mentioned last week was tested. Right now, it is a make or break time. If the 2530 low is unable to hold selling and support is broken convincingly then we should see the wheels come off this market and probably go into bear market territory in a matter of weeks. However, if bulls are able to keep 2530 as the floor then they have a chance for a rally to form a right shoulder of a multi-month Head and Shoulders with a target of 2872 for the next few weeks. What happens in the next few sessions will be crucial and could gives us an idea of where is 2019 headed. Personally, I am hoping for much lower lows so I can start buying stuff with the money I have been saving.

Short Term Trend = Bearish
Medium Term Trend = Bearish

Long Term Trend = Bearish

* 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 - December 14

I was wrong on assuming prices would make a higher high as the market sold off again and closed just barely under 2600. All the gains from the rally that started in April are now completely gone and prices could end up testing this year's low at 2532 in the next few weeks. There are some in the financial media that are calling for a bottom but I personally wouldn't touch this market. The TA and all major trends are firmly bearish and the risk is there for a bigger sell-off.

Have a great weekend!

Short Term Trend = Bearish
Medium Term Trend = Bearish

Long Term Trend = Bearish

* 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 - December 13

The market closed flat today but it seems like it is ready to make a higher high in the next day or two. I assume the Trend Average will be tested and only then will we know if the bounce is short-term or will continue for a while. There seems to be a lot of talk of progress being made in the US-China trade talks but I think that's just the explanation the media is using for this bounce. The real reason might be that the market was simply very oversold.

Short Term Trend = Bearish
Medium Term Trend = Bearish

Long Term Trend = Bearish

* 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 - December 11

Prices went again on a rollercoaster ride today but gapping up in the morning before giving up all agains at the end of the day. There is a possible bottoming pattern in place if the 2583 low holds any further selling. However, any bottoms at this point are probably temporary considering the market will probably continue to head down in the longer term.

Short Term Trend = Bearish
Medium Term Trend = Bearish

Long Term Trend = Bearish

* 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 - December 10

The market experienced strong selling earlier today before closing slightly positive at the end of the day. An average person wouldn't think much of it given the fact the market came back but the technical damage done today is substantial and opens the door for much lower lows ahead. In fact, unless the counter-rally is very strong in the next few days, there is a risk 2532 will be taken out in the next week or two and this could bring the type of sell-off we haven't seen in many years. With a death cross in place, the stars are finally lining up for bears.

Short Term Trend = Bearish
Medium Term Trend = Bearish

Long Term Trend = Bearish

* 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 - December 6

Prices dropped sharply in the morning below support at 2631 before bouncing back towards the end of the day. This new low remains above the 2603 support level I mentioned a few weeks ago, which is the must-break level for bears. I assume we will continue to see prices counter-rally given how oversold the market is but the death cross should occur tomorrow and we could see rallies sold into by traders. Resistance is a 2746 and at 2760.

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

Long Term Trend = Bullish trend being challenged

* 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 - December 4

I guess the inevitable came sooner than later. The market lost substantial ground today supposedly on doubts about the economy, inverted yield and the trade war. Or maybe, traders are realizing the long term bearish trend is inevitable and sold on strength to bag holders. With the market closing right on the TA, the short-term trend technically remains bullish but the death cross is now imminent in the next few days and the TA should turn bearish soon as well. Anybody buying the rallies is just asking for it at this point.

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

Long Term Trend = Bullish trend being challenged

* 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 - December 3

The market has made a higher high and has closed comfortably above the 200 DMA after the weekend trade war truce announcement. If prices are able to use 2760 as support then the death cross will be avoided and arguably the bulls will have a chance at a Christmas rally. However, given the fact that the tariffs remain in place and interest rates are going higher, the inevitable will happen sooner or later.

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

Long Term Trend = Bullish trend being challenged

* 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