Wednesday, April 8, 2020

Elliott Wave Stock Market Update - April 8

Sorry for the long absence but I have been under crisis mode due to staff not coming to work because of the virus at my business.  However, I have managed to operate by adding new staff and doing a lot of the work myself so I am good for now. Anyway, the market did substantially go down after my last post but has since found a bottom and is now rallying towards the 2855 level I mentioned last week. This counter-rally has been expected and is really no more than a sucker's rally imo so I assume there will be a lot of big traders piling up to sell as prices get to resistance to make bag holders out of the unsuspecting retail investor/trader. Last week the number of infections was 100K, now is 400K and as I predicted weeks ago the numbers will be well over a million or in the millions. In fact, the policy of the US is to keep numbers "low" until a vaccine or cure is found so who knows what the ultimate number will be. We will be in a deep recession for a while for sure and I expect this bear market to last a while as prices for all assets will have to come down to the long term median. After all, this market had been extended for a long time and it was always a matter of when and not if for the bear market.

Stay healthy and safe!

Short Term Trend = Bullish
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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