This week’s action was ugly. Per Investor’s Business Daily, we’re in a correction, which matches the short-term outlook from Elliot Wave.
Whether this is the start of “the big correction” remains to be seen. Remember to follow your process, lock in gains when prudent, but above all else KEEP YOUR LOSSES SMALL!
Short-Term: Downtrend in search of support
Mid-Term: Downtrend
Long-Term: Uptrend
REVIEW
A volatile and somewhat disappointing week for the bulls. The week started off with a gap down on Monday, followed by a tradable low at SPX 1837 on Tuesday. Then after a rally to SPX 1873 at Thursday’s open, the market sold off rapidly into Friday. For the week the SPX/DOW were -2.50%, the NDX/NAZ were -2.85%, and the DJ World index was -2.0%. Economic reports for the week, oddly enough, were all to the upside. On the uptick: consumer credit, wholesale inventories, export/import prices, the PPI, consumer sentiment, the WLEI, the M1-multiplier, plus the budget deficit and weekly jobless claims both improved. Next week we get reports on the FED’s beige book, Industrial production, the NY/Philly FED and Housing.
LONG TERM: bull market
This week’s market activity put a dent in our more bullish realignment scenario as the SPX/DOW/NDX/NAZ all confirmed downtrends. The realignment would have occurred if the SPX/DOW remained…
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