Monday, December 22, 2014

Elliott Wave Stock Market Update - December 22

The market closed at an all time high and a new highs are being put in after hours trade. I think the little sideways correction today could count as a micro W4, but so far this structure reminds me of the last wave we had from 1821-2079, which kept grinding higher and higher after mild corrections. And considering there are many fund managers behind the SP500 performance for 2014, many might be forced to buy more in fear there will be no pullback. Also, oil fell substantially today and the market barely blinked, so there isn't much bearish hope other than the market being overbought. I ended up buying oil today because of a potential triple bottom reversal (the risk is that it is a descending triangle), so hopefully I can milk a 10%+ run from today. Lastly, I posted this over the weekend but I had to revise one of the charts, so here is the post again.. things are looking very bullish at the moment.

Long Term Market View

I haven't updated this chart in a while but here it is. Now that I think we have a LT INT W4 in place (1821), we can start preparing for the end of the entire move from 1075 in back in 2011. Assuming this final wave is the same as W1, then the ideal target would be 2168. On the longer term, the target I mentioned on Friday (2485) looks very possible with this long term count, which I have not really altered in over 3 years. But that should come after a top for LT III wave and the following LT IV to reset long term oscillators.

Also, I wanted to post the Inverse Head and Shoulder's I've been mentioning in the last few weeks. I assumed most people knew what I was talking about, but since it is a sloping IHS, it might not be all that clear. This pattern is targeting 2277, which sounds ultra bullish but if you add the length of the rally from 1821 to the 1972 low, you see it almost gets the market there. This would overshoot the "ideal" target 5th wave target, but that's what final waves do sometimes.

For further analysis on the NASDAQ, DJI, RUT, Gold, Silver and Oil please visit

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.

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