Elliott Wave: Week of 12/18/17 - New tax bill for everyone
With so much focus and energy on the passage of a tax bill it is natural to inventory winners and losers. Sure enough, the market will play that game, too. The march to new highs continues for bulls, but the time for inevitable pullback is nearly at hand for bears. Yes, something for everyone in the bill's passage as both bulls and bears contemplate what's next.
Patient bears will be rewarded from higher levels as most pullbacks generally fall to the area of wave 4. Continue to look for final wave 5 to correct to it's own wave 4 level, and then bounce before for all waves correct to the next higher degree wave 4. The expected pattern is a corrective a-b-c movement. Not necessary to identify the exact peak, but watch closely as 2700 approaches and monitor MACD/RSI.
Patient bears will be rewarded from higher levels as most pullbacks generally fall to the area of wave 4. Continue to look for final wave 5 to correct to it's own wave 4 level, and then bounce before for all waves correct to the next higher degree wave 4. The expected pattern is a corrective a-b-c movement. Not necessary to identify the exact peak, but watch closely as 2700 approaches and monitor MACD/RSI.