The broad stock market started to pull back as bullish momentum weakened last week. Elliott wave analysis suggests that the S&P 500 index should start a short-term corrective wave after the powerful V-shaped recovery. Gold, silver, and the 30-year U.S. treasury bond still keep up bullish momentum. The broad stock market is projected to be in a short-term neutral time-window until 2/25/2019.

The Broad Market Instability Index (BIX), measured from over 8000 U.S. stocks, closed at 11 on Friday 2/8/2019 (up from 6 the previous week) which is below the panic threshold level of 42 and indicates a bullish market. The Wilshire 5000 index is above the 89-day exponential moving average, and the momentum is slightly positive. Based on the forecast of the Leading Wave Index (LWX), the broad stock market is projected to be in a short-term neutral time-window until 2/25/2019 (see the second table below).

The daily chart below has the Wilshire 5000 index with both the BIX and the Momentum indicators. The current market status is summarized as follows:

The following table ranks sectors by using the StockCharts Technical Rank (SCTR) based on six key indicators which cover long-term, medium-term and short-term timeframes. Outperforming sectors are Precious Metals, Real Estate, and Utilities. Underperforming sectors are Oil Equipment, Energy, and Materials.

The SPX is in primer impulse wave [5] which is the last upward wave of a multi-year primer [1]–[2]–[3]–[4]–[5] five-wave sequence started from 2009. The current primer upward wave [5] is in progress to develop an intermediate (1)–(2)–(3)–(4)–(5) five-wave sequence.

Intermediate corrective wave (4) extended the correction started from early last year, and it had a A–B–C sub-wave sequence. This A–B–C corrective sequence formed a expended flat formation which wave B extends beyond the start of wave A, and wave C extends beyond the end of wave A.

Now intermediate upward wave (5) has started. This intermediate wave should have a 1–2–3–4–5 sub-wave sequence. Currently upward sub-wave 1 is ending, and corrective sub-wave 2 will be the next..

The S&P 500 index on daily chart below formed a 4-month descending broadening wedge pattern. Recently the price has broken above the upper boundary of the wedge. It is bullish with an upside price target projected at 2925, as long as the price stays above the upper boundary of the wedge.

In the following weekly chart, the German DAX index is in primer impulse wave [5] of a multi-year primer [1]–[2]–[3]–[4]–[5] five-wave sequence. Upward primer wave [5] is in progress to develop an intermediate (1)–(2)–(3)–(4)–(5) five-wave sequence. Now it is in intermediate corrective wave (4) which has a A–B–C sub-wave sequence. Downward sub-wave C has ended.

The India Bombay Stock Exchange 30 Sensex index is forming a 2-month rising wedge pattern. It is neutral before the price breaks out from the wedge.

The Shanghai Stock Exchange Composite index formed a 4-month descending triangle pattern. The price broke above the upper boundary of the triangle. This is a short-term bullish sign for the index as long as the price stays above the upper boundary of the triangle. The Chinese stock market was closed last week for Chinese New Year holidays.

In the following weekly chart, the Shanghai Stock Exchange Composite index formed a 4-year descending triangle pattern. The price breached the lower boundary of the triangle. It is bearish in intermediate-term with a downside price target projected at 2000 as long as the price is below the lower boundary of the triangle. The Chinese stock market was closed last week for Chinese New Year holidays.

The 30-year U.S. treasury bond index formed a 12-month broadening triangle pattern. The broadening triangle indicates a volatile market with great uncertainty. It is neutral before the price break out from the triangle.

The U.S. dollar index is forming a 8-month ascending broadening wedge pattern. It is neutral before the price breaks out from the pattern.

The gold index is forming a 4-month rising wedge pattern. It is neutral before the price break out from the wedge.

The silver index is forming a 4-month rising wedge pattern. It is neutral before the price break out from the wedge.

The crude oil index had a V-shaped recovery, and is forming a 2-month inverted head-and-shoulders pattern. Now it is forming the right shoulder.

The following table ranks asset class by using the StockCharts Technical Rank (SCTR) based on six key indicators which cover long-term, medium-term and short-term timeframes. Currently Gold is outperforming and Crude Oil is underperforming.