Elliott Wave Stock Market Update - December 18

If there was any doubt 1972 was a bottom, today's desperate buying should be a clue. The market has had the best two day rally in almost 2 years and chances are the rally will continue for the remainder of the month with or without a pullback to the Trend Average/2024-2034 level. Technically, I could label the micro waves from the bottom as a completed 5 wave structure but I lean towards seeing the all time high challenged on this wave.

Also, I was looking at charts from the past and I found this one below that I posted more than 2 years ago. Back then, I proposed the similarities between the patterns at that time and the correction that took place in the 1970's. Looking at it now, it seems obvious this pattern is going for its technical target of 2484. Back in 2012, not too many people were favoring a break out (most expected "Bearish P3") and the idea of 2484 sounded insane.. but it doesn't look so crazy now.

End of 12 year Correction Update and Why this W1 might take out 1475

 

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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.