Elliott Wave Stock Market Update - July 25

The market reached a higher high this week at 3280 but ended up reversing most of its gains. Arguably, the pattern in place is bearish unless prices are able to make a higher this coming week. The Trend Average continues to be bullish but could turn bearish if support at 3200 is broken in the next few sessions. I still favor a challenge to all-time highs before a strong sell-off takes place so we'll see how things evolve. I remember making a big deal of the US surpassing China back in coronavirus cases (80,000 cases) back in March and assuming a historical sell-off would come around this time where we have north of 3 million cases but I was completely wrong on people acting rationally. Maybe the same crowd that panicked back in March when the US had a few thousand cases will all of a sudden wake up and realize how bad things really are.

Short Term Trendd = Bullish trend being challenged
Medium Term Trend = Bullish

Long Term Trend = Bullish

For detailed wave analysis visit http://ewaveanalytics.com

* Trends are not trading signals. Trends are posted for situational awareness only and do 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 into consideration other factors

Elliott Wave Stock Market Update - July 19th

The market has continued to rally as expected and just needs to overcome resistance in the 3230-40 range to possibly breakout and challenge ATHs. In the meantime, the number of virus cases in the US is now out of control and there is simply no end in sight to this nightmare. The market continues to behave like the orange clown himself like nothing is happening but the inevitable will come. You simply can not deny a once in a 100-year pandemic! I read an interesting article on what JP Morgan is predicting and it just goes to show nobody knows anything at this point other than it will be bad no matter what.

https://www.cnbc.com/2020/07/18/jamie-dimons-warning-for-the-us-economy.html

In the meantime, we just need to be patient and wait for a fast cure or vaccine.

Short Term Trendd = Bullish
Medium Term Trend = Bullish

Long Term Trend = Bullish

For detailed wave analysis visit http://ewaveanalytics.com

* Trends are not trading signals. Trends are posted for situational awareness only and do 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 into consideration other factors

Elliott Wave Stock Market Update - July 12th

The market had another good week by closing up +4.01% and a new golden cross is officially in place. A continued rally towards all-time highs is now likely in the next few weeks but once it gets there I wonder if the fundamentals will finally catch up and drag everything back down. The virus situation is now at catastrophic levels and I don't know much more the market will ignore the fact that we are in a recession that will be long-lasting. Like I said last week, this is probably the ultimate sucker's rally as I think it's obvious a crash is coming.

Short Term Trendd = Bullish
Medium Term Trend = Bullish

Long Term Trend = Bullish

Elliott Wave Stock Market Update - July 5th

If someone would have asked me a few months ago if the market was going to be in rallying mode and set to challenge ATH during the peak of a pandemic, I would have said no way. But this is exactly what is happening now. The virus is going as strong as ever and there are parts in the country facing a healthcare collapse in the next few weeks. In addition, some states are rolling back the re-opening of the economy but the market behaves like it is 2019!! Maybe I am missing something but perhaps this is the ultimate sucker's rally as I don't see our economy generating the profits necessary to maintain a rising stock market. The only justification I can see is the fact that interest rates are close to zero and investors have nowhere to put their money but stocks and real estate. Perhaps, prices will reach new all-time highs soon and then selloff just like they did in March where amateur investors didn't have time to react. Crazy times we are living in!


Short Term Trendd = Bullish
Medium Term Trend = Bullish

Long Term Trend = Bearish