Elliott Wave Stock Market Update - January 14

The market continued its downtrend today and it has now eliminated the potential bullish 1-2 count that had been in place since the market bounced from 1992. But given the invalidated bearish counts on the other indexes, I lean towards labeling this move from the 2093 high a zig zag. Which implies this is a correction and a new all time high will be coming once the market finds a bottom. If we ignore the other indexes, then this wave on the SP500 would a bearish W3 that would fit well with the Head and Shoulders targeting the 1880 area. But you just can't ignore the waves on the other markets.

Oil spiked today, the strongest one day bullish move in almost 3 years. Which favors my view that oil would be finding a bottom this week after waves exhausted themselves. Still, the rally needs confirmation and that will be trade over $48.60 on WTI. If a bottom is found there, then bears will have to turn to copper for further excuses to sell. But again, copper is just another excuse so don't be fooled by the panicky headlines. The article below explains it;

http://www.businessinsider.com/chinese-copper-demand-falls-2015-1 

My position in oil is now back to green. So I expect to adjust my stop on a follow through rally to oil's Trend Average.

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 = Bearish

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 whipsaw