Next Dow target 10466, S&P target 1120, but breadth needs to roll over.
Overview: We got a short term sell off from the last sell signal, but the markets have recovered. Although I've doubted it every step of the way, S&P 1120 is now just overhead and likely to be tested. The market momentum needs to fade before looking at the short side however. Details: On November 10th I said: "The count on the Dow shows a potential pattern termination at a moderate new high likely short of 10325. The alternative count allows for a new high (v of 3), then a small pullback (4), and then one more push (5) that could hit 10325." The Dow exceeded 10325 (10342) and then sold off to the 10200 area. That low qualifies as wave 4 and the rally we are in now is likely 5 and pushing well above 10325. Breadth is still solid and the short term pattern is not complete, so at least on more rally is likely. Here is the very short term Elliott Wave breakdown. The markets should have a short shallow pullback, and then rally to new highs. Breadth should not confirm the final rally is indeed the markets are going to roll over. Longer term the Dow is approaching A=C (the idealized target for an ABC correction) near 10466. Also the rally has extended over the top of the uptrend channel. Volume is again fading. The S&P cash is approaching 1120. I mentioned this level back in mid summer, but I didn't believe we would ever see it. It's less than seven points away as I write and it now seems likely to be tested (maybe exceeded?). www.smarttrades.com Entire publication © Smart <b>...</b>
Day trade Stock Market Technical Analysis Elliott Wave Gold S&P e-mini trading trader systems
