Please try another search
In June (see here), I warned of a potential bullish wedge pattern on the S&P500 (SPX) targeting 4300+. I followed up on that analysis a month later (see here) as the index confirmed the pattern by breaking out. The upside target remains ideally at SPX4365-4530:
“a 62-76% retrace of the entire Year-To-Date Decline … if the current six-month-long diagonal pattern completes, I expect the rally to last longer than a few weeks.”
Yesterday, the index reached SPX4187, only 4.1% below the lower end of the already June projected upside target. So far, so good, but does this mean the counter-trend rally is over and a new bear market leg down has started?
Figure 1 below shows the bearish Elliott Wave Principle (EWP) option I am tracking alongside a bullish one (not pictured).
Despite a smaller 4th and 5th wave pattern higher, SPX4250+ cannot be ruled out just yet because a-waves can be either made up of three or five waves. Therefore, the index can have complete (black, major) wave-a of a larger (blue, Primary) wave-B bounce.
B-waves always comprise only three waves: a-b-c. And while the index may have already completed a wave B, the recent breadth thrusts (see here and here) suggest odds favor more upside.
Per this bearish EWP count, I am looking for a multi-day, overlapping pullback to the ideal lower black, boxed target zone (SPX3900+/-100).
The next leg should kick off to around SPX4350, but possibly as high as SPX4500-4600 (the higher black, boxed target zone). Please note that the vertical lines represent time symmetry; it took 114 days from top to bottom, and I, therefore, expect this potential bounce only to last longer than the current two months.
Amid upcoming central bank meetings and crucial macroeconomic data releases, market sentiment is poised for potential shifts. While broader market indexes may continue to...
This year, the S&P 500 has seen a remarkable streak of 17 new all-time highs, outpacing many previous years. Notably, Warren Buffett's Berkshire Hathaway has stakes in two...
It had to end eventually. Whether last week’s shift in the pole position endures is something else entirely. But for the moment, US equities are no longer leading the horse race...
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
I feel that this comment is:
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.