The rally continued today without much of a retrace in what seems like a micro-w3. I assume a pullback to gap support will come in the next session or two so I can buy back my long position. The rally is being fueled by short covering and people buying the break out so this rally might go on for a while without a substantial correction, possibly to 2200+.
I started my calculation for the LT-W5 target and I am getting 2426 or 13% higher from current levels. I am assuming this LT-W5 will end up being a rising wedge. If the wave ends up being a regular impulsive wave, then I have 2722 or 27% higher. With that said, we have to keep in mind that 5th waves are free to end at anytime after the 3rd wave peak so one has to be particularly careful of support levels on this rally. Time wise, the ideal time frame would be a rally until summer 2017 or just in time to welcome the next mediocre President (both options are very mediocre imo, the worst I've seen in my adult life). I'm sure people will be blaming the next President for the next recession as most people are clueless of economic cycles but this should not come as a surprise to anyone who has been reading this blog for a while. So I hope people here can profit from this new rally and prepare for the coming bear market, which hopefully will retrace 50% of gains from 2009.
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Short Term Trend = Bullish
Medium Term Trend = Bullish
Long Term Trend = Bullish