Elliott Wave analysis and trading strategies for major indices
Market outlook
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Thursday: Anticipated to show a minor Wave Four correction across major indices.
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Friday and Beyond: The upward trend is expected to resume, continuing the robust November/December uptrend with new market highs anticipated.
Index-specific analysis
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S&P 500 (SPX): Progressing through Wave (v) of iii) of 5 of (5) of 3), indicating a strong bullish impulse and potential for further gains.
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NASDAQ 100 (NDX): In Wave (iii) of iii) of 5 of (5) of 3), often the most powerful wave, suggesting accelerated growth and strong upward momentum.
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Russell 2000 (RUT): Experiencing Wave iv) of 5 of (3), a corrective phase that may offer advantageous entry points before the next upward impulse.
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DAX 40 (DAX): Completing Wave (v) of iii) of 3, signaling the end of a significant impulse phase and the possibility of a short-term correction.
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FTSE 100 (UKX): Undergoing a Wave 4 correction, presenting potential buying opportunities ahead of the forthcoming Wave 5 rally.
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S&P/ASX 200 (XJO): Moving through Wave v of (v) of iii) of 5, supporting continued bullish trading strategies.
Trading strategies
- Buy on Dips: Utilize the expected Wave Four corrections to enter long positions at more favorable prices.
- Momentum Trading: Leverage the strong impulse waves, especially in indices like the NASDAQ 100, to ride the bullish trend.
- Risk Management: Implement stop-loss orders below key support levels to protect against potential market reversals.
Conclusion
The Elliott Wave patterns across major global indices suggest that the current uptrend is ongoing, with new highs on the horizon. By aligning trading strategies with these technical insights, traders can optimize their positions to capitalize on anticipated market movements.
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Historical results are no guarantee of future returns. Some investments are inherently riskier than others. At worst, you could lose your entire investment. TradingLounge™ uses a range of technical analysis tools, software and basic fundamental analysis as well as economic forecasts aimed at minimizing the potential for loss.
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