Wednesday, December 17, 2014

Elliott Wave Stock Market Update - December 17

The market seems to have found a bottom yesterday and now there is a diamond bottom pattern in place, so timing couldn't be better for a Santa Rally. Obviously, I want to see the Trend Average turn bullish before confirming the end of the correction. But so far it is looking good for the bullish case as it is going as predicted few weeks ago.

"If the market is going to behave "normaly", we should see decent bearish action very soon."

Where it gets trickier is in January, where we should see another correction after a new all time high? So far, all the excuses for the sell off have been meaningless but maybe we'll get something early next year that really scares the markets. Perhaps it will be Russia or Putin to be specific, given the extremely bad economic situation there at the moment. In fact, I wouldn't be surprised if Putin launches an all out invasion of Ukraine at all.

Also, I will attempt to chart the longer term waves this week and see where the market stands. Off the top of my head, I think we're in the final bullish multi-month wave which might coincide with the first actual rise in interest rates or even a mild recession that sets up Jeb Bush to win in 2016 (I think he wins it regardless).

For further analysis on the NASDAQ, DJI, RUT, Gold, Silver and Oil please visit

Short Term Trend = Bearish
Medium Term Trend = Bullish
Long Term Trend = Bullish

* 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 into consideration other factors.

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