Elliott Wave Stock Market Update - January 22

The market rallied today as expected after the European Central Bank announced QE, which in itself was not really a surprise. The price action confirms the double bottom at 1988 and officially turns the Trend Average to the bullish side. In addition, there is  now cross over on the daily MACD, a close over the 50 DMA and a potential Cup and Handle pattern forming that targets 2,140. I expect a pullback to test the Trend Average or the 2038 support level to consolidate gains in the next session or two. But I wouldn't be surprised if the run continues given all the non-stop rallies in the last 3 years after significant bottoms.

I ended up buying oil again given the clear stop level at last week's low. Perhaps it will finally start a counter rally to its 50 DMA.

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


Short Term Trend = Bullish
Medium Term Trend = Bearish trend being challenged

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