The market continued its counter-rally today and looking at the pattern, we are seeing an ABC move or the beginning of a 5 wave impulse. My guess is a rally that gets stopped at resistance at the 2383 level will most likely be an ABC move and lead to a continued correction. But if we see a strong move past resistance, then we will have a W3 and a projected target of 2405 or a new all-time high. The economy is doing well and this could go on for a while more, maybe 1 or 2 years? The Feds need to raise rates aggressively in the next few months and once they start cutting, that will be our clue that the recession is on the horizon.
On a sidenote, I am almost at my retirement goal I set for myself years ago. I got here thanks to my business and some investments unrelated to stocks, so in a month or two I could retire and do nothing for the rest of my life (not that I would do that since I enjoy being productive). It took me about 22 years(when I first formulated my retirement plan) to get to this point and anything going forward will be just icing on the cake. I am keeping my positions in China intact and after almost two years of correcting, I think the recent "bubble" high will be challenged later this year or next. Whatever happens is extra but I hope it doubles in the near future, I've waited long enough.
Have a great weekend!
For further analysis on the NASDAQ, DJI, RUT, Gold, Silver and Oil please visit http://www.ewaveanalytics.com
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