S&P made a new high on Friday, reaching our initial target as mentioned in our members newsletter update.
It is most probable now that S&P has finished wave (iii) blue and is ready to start the week with some profit taking. The rally is in its final stages and some selling could be expected early this week. Prices could decline towards 1540 testing the blue upward sloping trend line. A decline below that short-term support could put in danger our entire wave count and the upward trend that was re energised at 1485.
Of course the line in the sand is the start of the latest rally, wave 4 low and 1485. Prices breaking that level will confirm the end of the entire upward move that trades inside the red channel, and prices are expected to pull back correctively towards the 50% and 61.8% retracement. All this info are just for to be cautious and know what to expect next. A sharp decline should not come as a surprise despite recent all time highs in Dow or new highs that we might soon see in S&P
For more help trading this index, don’t hesitate to contact us. 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.