The market rose over 1% at the open of today's trading. I knew there was going to be somewhat of an exaggerated move because of the MLK Holiday. The thrust of the market broke the trend line resistance but has since retraced. This could mean one of two things, that this is a new wave count or a very deep retracement of wave 2. I see this being more the latter but could very well be a new wave count. It is always imperative to keep an open mind and continue to conduct objective Elliott Wave analysis. Here's how we have done up until 10am...
The trend line with the 3 circles is the trend line that was broken, but prices may very well retrace below the trend line, making this a bull trap scenario. For any long term investor, I would recommend waiting for the market to commit to you. I would also be sitting tight as a short term trader. I do still have a downside bias, but I will objectively update after the market closes today with new information!
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