The market got close to its all time high today but reversed as expected and should see a minor correction coming soon. However, I should note the DJIA has made an all time high and much higher highs are likely. I won't be surprised if all major indexes stage a major rally to substantially new highs in the next few weeks.
I incorrectly assumed the markets would not be able to tolerate a Trump presidency given the signs prior to the elections. And the market did panic for a few hours by crashing in pre-market trade but it seems like traders changed their minds and are now looking at the potential benefits of Trump's policies. So the wave count and technical indicators ended being correct anyway despite Trump. My opinion ended up being wrong. However, the long term wave count is nearing a top and a recession is going to come sooner than later. Trump's economic policies are much better for growth so in a way the US is lucky we will have pro-growth policies from a businessman as opposed to a political bureaucrat. I have always been for lower income taxes and lower corporate taxes and this is what he said he was going to implement. I am more in line with the establishment Republicans when it comes to trade so I hope something gets worked out there. Being an isolationist country will make the US noncompetitive in the long run, it's econ 101.
I ended up buying oil today and will continue to wait for a good correction to get back in long in the SP500.
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 trend being challenged
Long Term Trend = Bullish
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