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 (more…)
by Avi Gilburt, ElliottWaveTrader.net
First published Sat Jan 7 for members of ElliottWaveTrader.net: This past week saw a very nice move higher in the GDX and gold, but silver has seriously lagged, which does dampen any outright bullishness at this time. But, let’s review where we stand overall.
Several weeks ago, as the GDX broke down below its .618 retracement, many were throwing in the bullish towel, and everyone seemed to adopt the “clear” heads and shoulders pattern presenting on the daily chart, while pointing to target levels below the January 2016 low. But, it just seemed too obvious to me, and it seemed like the market was setting everyone up.
In November, well before we broke the .618 retracement and well before we broke the neckline of the seeming heads and shoulders pattern, I wrote the following:
In our Trading Room at Elliottwavetrader.net and in my live video sessions with our members, I have noted several times over the past weeks that the perfect bottoming set up would begin as the market recognizes a heads and shoulders pattern setting up in the GDX. And, many this past week were pointing to this “perfect” pattern, which they view as setting us up for new lows in the complex. In fact, it could be “too perfect” since the entire market seems to now be hyper-focused on how it is going to take us to lower lows.
From the folks at EWI………seems worth considering……could this be the end of the Trump rally?
I was tidying up some things in my home office today, and I noticed a couple of binders that I hadn’t looked at in years. They were labeled “Tim’s Trading Tome” volumes one and two. In them were hundreds of pages and charts I had collected in late 2008, 2009, and 2010, Early 2009 of course, was the bottom of the market, and we began a multi-hundred-percent climb (in the case of some stocks, multi-thousand-percent) climb.
Naturally, though, on the heels of the financial crisis, there were plenty of popular publications that were saying it was the start of something much bigger. Here’s a snippet from one we all know: