Elliott Wave Stock Market Update - February 28

The market closed down -11.49% for the week, making it the worst week since the financial crisis in 2008. I remember back then the market had massive swings and if the virus issue manages to cause panic and eventually a recession then we will see a lot more downside ahead. Prices ended up testing the upper band of long term support at 2822-2855 and should prices fail to hold this level then the next level to watch is 2728. At some point there will be a massive counter-rally I am sure but probably it is one that will be sold into if there are more cases of the virus, specially the ones where they don't know where it originated. I am hoping for a bear market as probably most of you are and this might be it finally.

Have a great weekend! Wash your hands, stay away from too many people!

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 - February 27

I haven't had the chance to post since Monday but this is what I added to EWA yesterday:

"Prices are now well under the 50 DMA and might see prices test the 200 DMA at 3045 before the current selling abates. If prices attempt a bounce but reverse and make a lower low then we should see a multi-week or multi-month correction that will drag down prices substantially. Technically speaking, we could see all gains from the last six months erased and see long term support at 2825 tested."

Seems like the market is going for the worst scenario which is a complete reversal of all gains made in the last 6 months. As it is, this is the fastest 10% correction in history from an all-time high and if panic really takes hold them it will break the record for a bear market from the top as well. The only significant level of support was 3045 but since the close was well below that, the next level to look at is 2825. The corona virus is just getting started in the US so it will be interesting how this is going to evolve.

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 - February 24

Bears have finally come out of hibernation! I had been anticipating a top and a stronger correction but  this is a lot better than I had been expecting. The sell off today was the strongest one in 2 years and bottomed at support created during last month's correction. This means, all gains from the last month have been completely erased and sets the market for a potential head and shoulders formation that will lead to a multi-month correction. Obviously, it's early to talk about a bear market but it is about time we had one. I am not sure the corona virus would be able to send the US into a recession but Bernie Sanders gaining tracking would. I am very pro-business and pro-low tax but I don't like Trump as a person. So I am ready to accept Sander's presidency and a big recession. In a way, it's a win-win in my situation as a recession would allow me to deploy all the cash I have been saving in the last couple of years. At the same time, should Trump win again, I'll just keep saving money from a good economy. I will vote for Joe or Bloomberg but their candidacies are not looking very strong at the moment.

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 - February 21

The market ended up reaching a new all-time high again this week before going into an anticipated stronger correction. How "strong" the pullback is depends on how 3317 holds. If prices fall below 3317, then there is a higher chance we are in the beginning of a multi-week correction. Whatever the case, the long term trend is bullish and until we see signs of a slowing economy or a recession, the bull market will continue.

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 - February 18

Prices pulled back slightly today in what seems to be part of a sideways correction and we could see another push towards new all-time highs as soon as tomorrow. Seems like the market is taking its sweet time to find a top.

Short Term Trend = Bullish
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 - February 14

The market made another new ATH as expected but it doesn't seem done yet as the "correction" in the last couple of sessions looks like a W4. So maybe another push or two to new records and then a bigger pullback. This market wants to go to 4000!!

Have a great weekend!

Short Term Trend = Bullish
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 - February 11

The market has followed the count posted and reached a new all-time high again today. Assuming, this was the 5th wave peaking and not the 3rd, we should see a bigger pullback in the next day or two. If the correction ends up being flat or within a small range then the count is like to extend. Maybe the market will use a Bernie in NH win as an excuse to sell off!!

Short Term Trend = Bullish
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 - February 6

The market was able to reverse its bearish trend and turn very bullish in a matter of few days. I was expecting a bounce from last week's sell-off but not this panic rally taking place. It seems as if the cure for the coronavirus was found! It can't be Trump being acquitted as nobody ever expected him to be convicted in the Senate so I guess the market was just taking a quick break before going crazy again.

Short Term Trend = Bullish
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 - February 3

Prices rebounded today somewhat but the potential for renewed selling remains considering the TA was not even tested in today's counter-rally. Given the potential for the coronavirus situation to drag on until at least March, there is plenty of time for a continued sell-off in the weeks ahead. One thing that is starting to grab my attention is the strong selling in China. If it goes lower, I might end up buying some shares as they might go in full panic mode over there.

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