Wednesday, January 7, 2015

Elliott Wave Stock Market Update - January 7




















The market counter rallied substantially today as expected and we could get an idea of how the rest of the month will shape up in the next few sessions. I am expecting the market to test the 50 DMA at 2041 but I also seen an IHS and a potential 5 wave micro count that can reach 2060-70. If the market fails to recapture the TA convincingly, then lower lows are likely. But if we get a strong W3 that closes comfortably above 2053, then there's a good chance we will be looking a new all time highs before the month is over. The market is very focused on oil at the moment and it seems to me like there could still be one more smaller bearish wave down if the bottom so far proves to be a micro W4. But if the bottom is in, then we should see a strong counter rally in oil which will be used as an excuse to take on all time highs in stocks. Also, next week people will be focused on earnings and they should come ahead of estimates.

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 = 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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