Friday, March 6, 2020

Elliott Wave Stock Market Update - March 06

The market had a very volatile week as expected and we could see more of it next week. I still think there is a good chance the market will make a higher high and possibly challenge the 50 DMA before resuming another bearish leg but the lower high made a few days ago opens the door to aggressive selling if support at 2822-2855 breaks this coming week and will confirm a C or bearish W3. We are seeing now virus cases in 20 states and before you know it, it will be in all of mainland US given the fact that travel is not being restricted. Also, Trump trying to make it look like the situation is not serious is not helping. If you have this virus all over the country then there will be more than an excuse for a bear market. I know Trump thinks about his own interests first more than anything else and I am sure he doesn't want people panicking but how he handles this situation will come back in November. This time, he can't ignore science or blame Hilary or Obama for it.

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

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