US Indices Stabilize After Elections, Opening the Door to Fresh All-Time Highs

US indices are showing signs of stabilization following the US elections, with the S&P 500 and Nasdaq 100 both recovering strongly after recent intraday volatility. The post-election relief appears to be supporting risk appetite, while falling US yields and a weaker US dollar are providing additional support for stocks and other risk-on assets.

From an Elliott Wave perspective, the NASDAQ 100 is stabilizing on the daily chart, increasing the chances of an ABCDE triangle pattern within wave (4). If prices maintain current levels or finish the day higher, wave D could now be underway, potentially opening the door for a recovery toward 30,000 before another slowdown in wave E.

Meanwhile, the S&P 500 could still be pushing higher within subwave C of (3) of an ongoing wedge formation. Alternatively, it may also be developing a bullish running triangle pattern within wave (4).

Interestingly, both scenarios point toward further upside potential, suggesting that the broader recovery may not be finished yet. As long as the current stabilization holds, US indices could be positioning for fresh all-time highs before a more meaningful top formation eventually develops.