I have been using this monthly Elliott Wave chart on the S&P 500 as a guide for nearly 4 years now. Pulling it out occasionally to remind traders of the big picture and how far the trend can run. Back in November 2010 I measured a 161.8% extension of the first leg higher after the financial crisis to get a possible target of 1923 for the S&P 500. This was a high level analysis. It has now hit that target. So is it time to sell everything? No, not yet. Keeping it high level here are a few reasons why.
Elliot Wave would suggest that when the end of Wave (III) is reached then we can expect some sideways action for a while before a Wave (V) thrust higher. None of this is a guarantee, but do you really want to just blindly sell now?
There are many other features here that you could use to analyze this chart. But keeping it simple and high level, it is not time to sell yet.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
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