Elliott Wave Stock Market Update - November 26

The market seems to have reset its short term overbought condition in a sideways move in the last couple of days and it now seems like it is ready to go to a higher high. There's simply nothing the market is fearful of at the moment and with December coming up, we might see uncontrolled euphoria if the market keeps doing these small sideway moves. That's not to say that they won't be a top, I am sure there will be one sooner than later. The main question is how much higher as this 5th wave just keep going and going. Also, with news of new stimulus coming from China and Europe coupled with a confirmed strong US GDP, the stage is set for a bullish close of the year for the US and the world.

I thought about closing my longs today given the strong advance but instead I closed my hedge to position trade it. I'll buy back those shorts again when short term oscillators get overbought again on Friday or early next week if we get micro W3 which seemed to be started at the EOD.

Happy Thanksgiving!

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 = 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.