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This was fairly an fascinating week we simply accomplished. Let’s begin with a headline identified to me by one of many commenters to final week’s article:
“TD Ameritrade information flash I acquired in my e-mail on the shut of market immediately
“Shares Made Document Highs within the Face of Tapering, Inflation, Provide Chain Points, and Employee Shortages”
So many are so positive that anybody of those points ought to have been sufficient to ship the market down in earnest. But, even when taken cumulatively, the market nonetheless continued to increased highs.
Then on Thursday, we noticed the reported at effectively beneath expectations. So, what has the market finished with this information? The market rallied over 1% because it was introduced.
This can be a bull market with a lot increased ranges to seemingly be seen in 2022. And, whereas a lot of you should still be attempting to battle this marketplace for no matter cause you imagine, I’m nonetheless on the lookout for the following main rally to take us to my subsequent goal within the 4900-5163 area into 2022. However, I believe we get at the least yet another sizable pullback earlier than that rally begins in earnest.
Over the past yr and a half, I’ve been pounding the desk that the market has a lot increased to be seen, but so many have been parroting the arguments above and telling me I simply have no idea what I’m speaking about. Properly, I’m fairly used to it already.
Actually, I’ve outlined these varied views in one in every of my .
So, if you end up falling into the camp of a few of these I define within the put up, then you might must rethink your market perspective. For in case you are not primarily targeted on sustaining on the right facet of the market pattern, then you’re solely fooling your self and dropping out on some great alternative that’s being introduced earlier than us, earlier than a serious bear market takes maintain within the coming years.
For these which have been following my evaluation this yr, you might keep in mind that I known as for at the least a 20% rally in 2021, with a great goal of 4600SPX this yr. And, when you think about that we began the yr at 3750SPX, and have struck a excessive of 4608SPX this previous week, I’d say that we have now finished a very good job this yr.
Actually, I even outlined my expectation for a rally to the 4440-4600SPX area earlier this yr, to be adopted by a pullback to the 4165-4270SPX area, thereafter to be adopted by a . And, with the low to date being struck within the futures on the area, it appears the market is following our Elliott Wave playbook slightly effectively.
As we had been hitting these lows a number of weeks in the past, I outlined to members of ElliottWaveTrader.web that there are lots of bottoming indications as we had been hitting our assist area in each worth and technicals. So, I defined I used to be a purchaser on the time since any additional potential draw back was dwarfed by the potential upside I used to be seeing as I used to be wanting in the direction of 2022.
Within the meantime, I’ll be aware that the smaller diploma construction shouldn’t be fully clear to me as we had been hitting the highs on Friday. Whereas the market is probably going setting as much as start its subsequent trending transfer to 4900-5163SPX as we glance in the direction of 2022, I must see a pullback within the coming weeks which is able to set us up for such a rally.
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