Elliott Wave Options: All Time High… Elliott Wave Algorithm Targets 5000

Stocks are pushing higher. Economic data seems to be in a “goldilocks” spot, where it’s not too bullish or bearish. That suggests that the market is in the middle of the Wave 3 of the Elliott Wave theory.

If that holds true, it could mean the markets trend higher for a few more months before a small pullback. Once that happens, the final wave could mean a massive surge higher.

The S&P 500’s break to new all-time highs over 4,850 puts the 5,000 level in play in the short-term.

That’s in line with prior moves higher after stocks make a new all-time high. It also lines up well with the peak of earnings season in the coming weeks.

Of course, nothing is perfect. 10-year Treasury yields have ticked higher. That’s the benchmark asset that could cause the market to pull back in the coming months.

For now, it’s a warning signal, not a dangerous one.

After a major move higher, cryptocurrencies have pulled back in recent weeks.

These assets don’t always line up with traditional assets such as stocks. And the rise in cryptos ahead of the bitcoin ETF news may be leading to some simple profit-taking now.

Overall, conditions are clear for stocks to keep trending higher in the next few weeks. But don’t get too leveraged, as a normal pullback will likely happen in the months ahead.

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