Elliott Wave Stock Market Update - April 16

The market didn't do much today other than reset some of its short term overbought oscillators. I broke down the recent bullish waves and they are 5 count waves, so my assumption is the market is consolidating before launching a stronger bullish wave as soon as tomorrow. The correction could continue but the downside limit is 2083.24, price action under support would indicate more selling ahead. But as I speculated a few days ago, the break out in oil is lending support to the market so continued strength in oil will help stocks reach new highs. And apparently, it's no longer speculation but one of current themes:

http://www.cnbc.com/id/102592048

Obviously, higher oil prices is not better for our economy but Wall Street needs an excuse. Maybe we might just have another "Sell in May" event this year after there are no more excuses left to rally. Hopefully, I will be picking up the VXX I sold last week (which is down almost 10% from when I sold it already).

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

Have a good weekend! 


Short Term Trend = Bullish
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 whipsaw