Elliott Wave Stock Market Update - January 16

The market bounced from the 1988 resistance level today and rallied the rest of the day, possibly in a double bottom to the most recent structure. If we see follow through buying next week that re-captures the Trend Average at 2023, there's a good chance the market will go back to bullish mode again. Oil seems to be confirming a bottom with today's rally over its Trend Avg and it's too bad I was stopped out yesterday during the retracement wave. If the rally in oil continues, the stock market will probably rally along as well and probably to a new all time high. Every time the market has been this oversold, we have seen new all time highs in the past 2+ years and most recently in December. I don't remember how many times its been already but I think this is the 7-8th time the market has reached this oversold level since Feb 2012. Obviously, at some point the market will roll over for a substantial correction. But personally, I don't see oil, copper, Greece or Switzerland stopping this uptrend. I think it will take "real" negative news to get momentum to the downside.

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