Elliott Wave Stock Market Update - October 30

The market was able to reverse all the losses from yesterday and challenge the 1999 resistance level, eliminating the bearish 1-2 set up and putting into question the V wave label. If the index overcomes 1999, there's a good chance the all time high will be challenged. Goes to show just how much the market was worried about the end QE. I am sure some excuse will come up soon for a correction or even a sell off, but in the end it will be just excuses to screw bears and panic sellers as this market has shown again and again for the last 2 years. Bears are probably between sore and numb at this point.. here's a chart to remind us of all the "panic attacks" this year.

But as I always say, it is about the economy! strong economy=strong profits=bulls win. Until the economy shows real deterioration or sharp increases in interest rates, the market will be pricing in profit growth.

I am holding on to my hedge but I might stop out if 1999 and try it again at 2019. I am sure the market is due for a pullback, but no point in fighting euphoria at this point.

For further analysis on the NASDAQ, DJI, RUT, Gold, Silver and Oil please visit http://www.ewaveanalytics.com


Short Term Trend = Bullish
Medium Term Trend = Bearish trend being challenged

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.