Monday, December 28, 2015

Elliott Wave Stock Market Update - December 28

The Trend Average was tested today in what seems like part of a correction. We could see another leg to a lower low, maybe even test 2022 support and if that level can hold then there is a chance of a strong rally if the market keeps trading above the TA. Oil is the excuse for the selling today but anyone following oil can see there is a good chance is headed towards a test of $40, so we'll find out very soon if the SP500 can manage to be green for the year or be negative for the first time in 7 years.

I saw the Big Short movie over the weekend and it's interesting for the likes of us. I remember back in 2005-2006, I refused to buy a home because I just couldn't make sense of housing going up 20% per year while incomes where flat. I wasn't smart enough (as the guys in the movie) to find a way to short housing but at least I waited patiently to buy it at the bottom in 2011. Watching that movie made me realize we got off (as a country) relatively easy, as what happened then was enough to send us into a 1930's like depression. Now that 2016 is almost here, the economy seems to be doing relatively well but the big question is what will be the price of these abnormally low interest rates we've had for the past 7 years. It's almost too good to be true actually. My businesses have done very well is this economy and I am hoping I will pay off my mortgage before the next recession comes. I just hope it won't be until mid-2017 so I can have time to be completely debt free before the next downturn.

For further analysis on the NASDAQ, DJI, RUT, Gold, Silver and Oil please visit

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

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