Potential Confluence Among Markets Still Exists

For quite some time, I have presented the hypothesis that many markets will complete their corrections and begin a bullish run together. Specifically, I have been surmising that the metals, miners, oil, and equity markets may all bottom together, and then rally together, at least for some time. In fact, it is not at all uncommon to see metals and miners rally along with a 5th wave in the equity markets.

As we stand at the close of business on Friday, it certainly looks like the equity markets and oil market seem to be within a 4th wave of their respective final declines, whereas the metals and miners, seem to be tracing out a 2nd wave, with the potential that GLD and silver may even still be in a 4th wave.

Ultimately, it seems that the various markets may be aligning to bottom over the next month or two Assuming we see follow through on these counts, it will likely lead to a bottoming which will trigger one of the most broad-based rallies we have seen in many years. So, while we still have some machinations to follow in the various markets over the upcoming several weeks, if follow through is seen to the downside in all asset classes, I will be expecting a major bottoming across asset classes, triggering a major, broad based rally in 2016.

Avi Gilburt is founder of ElliottWaveTrader.net.