Well, here we are with the S&P500 Futures approaching 2300, Nasdaq at all-time highs, Dow at 20,000, and Russell showing strength after 1.5 months of consolidation.
Were there clues?
Well, if you believe in Elliott Wave voodoo magic, we had what might be a textbook ending diagonal – (very difficult to spot while it’s forming) – that then reversed after completing.
Russell: Ending Diagonal
The Russell completed a 1-2-3-4-5 ending diagonal where each number was an a-b-c zig zag. We alerted a Buy right at the optimal point.
Dow Jones: Break of Descending Trend Line
Once the dow broke the descending trendline with conviction around 19770 – we were off to the races – with significant follow through overnight into the next day.
The one index that wasn’t so clear was the S&P — which was all over the place – mostly stuck in the 2250-2272 region. Even the Trump inauguration attempt at 2272 failed and went back to the lows before reversing in this 2-day rally so far.
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