by Avi Gilburt, ElliottWaveTrader.net
The stock market is too high. The fundamentals don’t support these heights. This rally is completely “fake” because it has been “manipulated.” The market is in “nosebleed” territory. We are in a blow-off rally. The market is about to crash. Yes, we have heard it all for months now. Maybe even for years. And, such perspectives have caused many to miss one of the best rallies we have seen in years, as they expect the market to top “any day now.”
But, the simple truth is that the market is in the heart of what us Elliotticians call a “3rd wave”, and they are relentless and the most powerful segment of a 5-wave Elliott structure. In fact, we have been within the heart of a 3rd wave since early November when we went against the common “market-think” and called for a strong rally to 2300 and beyond on the S&P 500 (SPX), even though Trump won the election. But, it also means that we still have to complete waves 3, 4 and 5 before a long-term top is seen, as I have been noting since early 2016, which you can see in a chart of our market calls in the link below.