Elliott Wave Stock Market Update - January 8

The market rallied as I expected and the IHS target was almost reached with today's high. Most importantly, the Trend Average was recaptured and this opens the possibility of a new challenge to the all time high at 2093. We still need to see more closes above the TA for the short term trend to turn bullish but usually whenever the TA is crossed with a W3, the trend usually favors the W3's direction. And like I said yesterday, earnings will come into focus while the sell off in oil is in its last stages. So we might just see another bull run in the next few weeks.

I was planning to short to hedge if the market hesitated around the TA but I guess I'll just have to wait until the bulls truly exhaust themselves. I know many are hoping for a bigger correction to start and I am sure there will be one, but not until there is a solid reason to sell (Oil and Greece are just excuses to take profit imo). For now, all sell offs have just been corrections from overbought conditions.

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


Short Term Trend = Bearish 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.