Elliott Wave Stock Market Update - October 16

The market has gone into 2030+ territory as I had originally speculated when 1950 broke and now the structure from 1871 seems nearly complete. If we assume W5=W1, we get 2046 but technically speaking the top could have been the close today since there are enough waves and W3 is more than 130 points. An ideal correction would be a sell off to test the 1950 level but it might not even get there given the overall bullish sentiment in the market. China, which is one of the markets that preceded the sell off in the US is now up 20% since its low in August and looking to confirm their correction is over (trading over its 50 DMA for the first time since June). Also other global markets are rallying overall, so unless this is a strong counter-rally, there is a good chance a global rally for the remainder of the year.

I know many people have been waiting for a bear market for years and I am sure one is coming sooner than later. But it looks like it won't be until next year or 2017 going by the lack of bearish advance on this recent selling opportunity. As long as profits expand, there is not much of an excuse to sell.

Have a great weekend!

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 = Bullish

Long Term Trend = Bearish 

* 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.