by Bob Stokes
Updated: December 20, 2018
Choose your adjective -- rocky, bumpy, jarring -- 2018 has certainly been a volatile stock market year.
As you'll recall, it started with that swift 10% drop in the DJIA in late January and early February. During that time and since then, the stock market has experienced dozens of triple-digit daily price swings.
But, even with the renewed round of volatility that started in October, many investors were unshaken.
Our Nov. 8 Ellliott Wave Theorist had a section titled "There Has Been No Panic" and said:
The stock market has exhibited no sign of panic among investors. On the contrary, intermediate and long term sentiment indicators have hardly budged from expressions of extreme optimism.
Our decades of market observations show that this degree of optimism hardly coincides with a price bottom.
Sure enough, the volatility persisted. One might think that after a tough November and thus far December for the bulls, investors would finally shift from optimistic to at least a little worried.
Well, this Dec. 18 Marketwatch story might surprise you:
Wall Street's really bullish on the stock market in 2019...
Wall Street sees a big rally of 17% from Monday's close.
As you'll recall, the DJIA closed lower by more than 500 points on Monday, Dec. 17.
Even so, that big drop, along with other triple-digit down days, have not been enough to alter much of Wall Street's bullish stance. The mentality that stocks almost always "bounce back" is still alive and well.
How does one explain such optimistic psychology in the face of wild market swings?
Well, another 2018 Elliott Wave Theorist offers insight through a historical parallel:
Keep in mind this comment from stock market historian John Brooks about the 1929-1933 experience:
[It] came with a kind of surrealistic slowness...so gradually that, on the one hand, it was possible to live through a good part of it without realizing that it was happening, and, on the other hand, it was possible to believe one had experienced and survived it when in fact it had no more than just begun.
The market always offers hope. Most investors... wait for the bottom before they give up and liquidate.
The stock market's Elliott wave pattern is revealing how far prices are likely to move before real signs of panic should start to emerge.
Learn what our Elliott wave experts are saying about the market's current juncture. You can do so risk-free. Look below to find out how.
Most investors are wondering whether the "worst is over" or, if the "worst is yet to come."
You don't have to "wonder."
You see, our Elliott wave experts' high-confidence forecast tells you what to expect next, so you can be confidently prepared.
Learn what they are saying now, risk-free. Look below to learn more …
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