Elliott Wave Stock Market Update - December 16

 

The market had a volatile day, opening at a lower low, rallying 40 points and then having all those gains reversed and closing at a lower low. The closing wave should be the end of the zig zag or a W3, so we'll find out in the next session or two if the bottom is in or this is going to sub-200 DMA. I continue to lean towards a rally due to seasonality and the lack of reasons for a strong sell off, but obviously anything can happen. Oil seems to have found a bottom of a yet undetermined degree,  but if the initial counter rally is a W1 then we're looking at a mid 60's target. Which would be the excuse for a stock market rally.

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 into consideration other factors.