S&P has made a small corrective move yesterday as expected. The correction expected was bigger than what it did yesterday, but our first support level at 1549 was respected. The Elliott wave count remains the same as in our previous posts and can be seen updated below.
Breaking below the 1549 could push prices towards 1542-38 area. There, we could see the end of a bigger wave (iv) correction before the resumption of the up trend. We expected the start of the week to be weak and we only got what we were expecting on Tuesday. Further weakness should be expected towards 1532(max) spot prices.
Trend remains up for the short-term, but I think the market’s power is almost depleted. as mentioned many times before should expect a turn around in the market most probably this week. A further rise to new highs will only make the correction deeper and steeper.
Concluding, we expect a short-term retrace towards 1542 as part of wave (iv). Since this is a correction, it can take many forms and it is very difficult to predict. The whole point is to prepare for what is coming after wave (iv) and (v) are over. For more help trading this index, don’t hesitate to contact me.
As always, thank you for taking the time to catch up on my thinking.
A term used to describe a trader who is expects that a particular asset – be it a commodity, currency or product – to rise in value. The opposite of a ‘bear’.
The idea is that bulls attack by bending their heads and poking their opponents upwards with their horns, symbolising the fact that they are buyers, driving prices up.
Beliefs held by the aforementioned ‘bulls’ of the trading world, are described as bullish. Characterised by a generally optimistic outlook on the state of a given asset, a bullish outlook would suggest that a rise in value is imminent. Opposite of bearish.