Elliott Wave Stock Market Update - August 20

The market came a few points of its all time high, despite the 30 min MACD correcting (which is highly unusual and a sign of bullishness). A little help from China's PMI overnight could easily propel the market to a new high tomorrow. Looking at the waves, if I add 1.618xW1 to the 1929 low, we get 1993. However, since this looks like a nested 1-2 structure, the rally can go on for a while before exhausting. Also, the Intermediate Trend has turned back bullish which basically supports the completion of a 5 wave count from the 1904 low.

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Short Term Trend = Bullish
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.