Elliott Wave Stock Market Update - January 2

Welcome 2015! I can't believe it's been  now almost 6 years since the 666 low in March 2009. A lot has happened since then, but at the same time it seems like all these years just flew by. Economically speaking, things do look a lot better now than in 2009 but obviously we still need to see the complete outcome of all the QEs. Since I am a natural optimist, I hope things will be even better 6 years from now in 2021.

Anyway, the market retreated to a lower low today in what looks like an over extended micro W4. I still prefer to label it a W4 because of the way oscillators have behaved. For example, the 30 min MACD shows a classic W4 reset (the longest reset I've even seen). So if there is a 5th wave coming, it must come on Monday or else there is something else in the works. There's a small IHS targeting 2065 more or less and if the bounce wave from 2046-56 is a micro W1 then 5 waves project to resistance at 2072. Last but not least, the market closed for the second time under the Trend Average and it must re-capture it early next week or else it will turn bearish. Which would force me to change the labels to a bearish option.. I hope not since I want to short to hedge at higher prices, but I guess we'll find out soon.

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


Short Term Trend = Bullish trend being challenged
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.