Post mid-terms

Wow - so the result was more or less what was predicted in the polls, and the markets had a HUGE rally.

Since the low of 2 weeks ago the DJI is up 2000 points.

Are we on our way to new highs?

Looking at the charts.

DJI - Daily chart with possible Elliott Wave count (BULLISH MEDIUM TERM)

Notes : Elliott Waves (click here for more information https://bullwaves.org/elliott-wave-course-define-dominant-trend-using-elliott-wave)
Elliott noticed that markets move in impulses (5 waves) followed by corrective waves (3 waves)

There can always be different wave counts (alternatives) - but it CAN give a clue as to market direction

so if we are in a final V wave up for this bull market to NEW all time highs, and we have had wave i and ii, then we are in wave iii.  The recent 2000 point rally COULD be the start of wave i of iii of 5, may not be finished

when it does finish then we should get a wave ii down before the wave iii of V.

Wave 2's can be deep which may suck in bears thinking that this is the next leg down.
(THAT COULD BE AN ALTERNATE COUNT)

Looking at the DAX in Germany (and FTSE similar);  despite the HUGE rally in the US the market remains subdued.  This could change with a break above 11800 which would invalidate the Head and Shoulders formation (previous post)

This may tie in with a fall in US markets- whatever there is a disconnect at the moment..but a fall in US could continue the correction ...
Alt: US continues to rally and DAX breaks upwards