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U.S. Debt Deal: Bullish or Bearish for Stocks?
Mainstream opinions can only play catch up with the markets, while Elliott wave analysis offers you objective forecasts

By Vadim Pokhlebkin
Mon, 01 Aug 2011 13:00:00 ET
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Monday morning (Aug.1), the DJIA opened 100 points higher. The news headlines quickly explained why:

"US stocks surged Monday, as a weekend debt-ceiling deal reached by Congressional leaders sparked a global relief rally in equities." (Wall Street Journal)
 
But just as everyone greeted the bull in the early morning trading, the DJIA reversed and fell by 100 points (data courtesy Google Finance):
 
 
Dow Jones 12,043.72 -99.52 (-0.82%)
 
Headlines tried quickly to keep pace with the Dow's bearish reversal:
 
"US stocks turned negative, erasing an early rally, as weak manufacturing data and worries that ratings downgrades to US debt could still be coming overpowered investors' relief over the weekend…" (Wall Street Journal)
 
See how quickly the same "influence" -- the debt deal -- went from bullish to bearish?
 
So, will this debt deal be bullish or bearish for stocks? You can wait for the headlines to tell you -- after the fact -- or you can get objective market forecasts, now.
 
Last Friday (July 29) our Monday-Wednesday-Friday Short Term Update warned:
 
[Bottom Line]: "The potential is high for a major volatility surge next week. ...the market is rapidly approaching a point where one main [Elliott wave] pattern will emerge."
  
We've certainly seen the volatility already -- and it's only Monday. Find out what's likely next with a comprehensive Elliott wave subscription now >>
 

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