Friday, May 31, 2019

Elliott Wave Stock Market Update - May 31

The market made another lower low today and it closed the week below the 200 DMA. This makes a much stronger sell-off likely in the next week or two unless there is some sort of bullish miracle. Trump's surprise tariff hike on Mexico was the catalyst but it's not just Mexico in my opinion but his general way of conducting business. Mexico had been working on a free trade agreement that had been basically a done deal. If Trump is able to dishonor agreements whenever he feels like it, what incentive does China or any other country have to trust this man and make concessions? This trade war is looking like the reason the economy will go into a recession. The stock market will be the first to raise the red flag and a true bear market should confirm a downturn next year and hopefully the election of another President.

Have a great weekend!

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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