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
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