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Elliott Wave Analysis: S&P500 Staying Quite Bullish

Stocks recovered very nicely and sharply since mid February so a new bullish reversal is here. The reason for a bullish trend was a five wave rise in black wave I, so obviously, we are looking much higher now into wave III of V). As always, we will focus on minimum expectations, which in our case is the 2300 mark where black wave III would be equal to wave I. We are staying bullish as long as the market trades above 2070 area.

S&P500, Daily

snp d (1)

Normally when the market completes a five wave move, the direction of a trend will change with minimum three waves. And this is exactly what is expected on the E-mini S&P500. On the 4H chart we can see five waves up from 2141 to 2190 that represents a final leg within a larger bullish impulse, so ideally, the market is now making a new corrective retracement that should be made by three waves. If we are correct, then wave C) will send the price back down to 2140-2150 area.

S&P500, 4H

SNP 4 (1)

Gregor Horvat

Gregor Horvat

Grega Horvat Grega is based in Slovenia and has been involved in markets since 2003. He is the owner of Ew-Forecast, but before that he was working for Capital Forex Group and TheLFB.com. His feature articles have been published on FXstreet.com, Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu, Insidefutures.com, etc. He recently won the award on FXStreet.com for Best Forex Analysis in 2016. At Ew-forecast he helps clients and educates them about the Elliott wave principle and how to label and track unfolding patterns in real time. His approach to the markets is mainly technical. He uses a lot of different methods when analyzing the markets such as candlestick patterns, MA, technical indicators etc. His specialty, however, is Elliott Wave Theory which could be very helpful especially if you know how to use it in combination with other tools/indicators. EW-Forecast To be involved in the market effectively, you need the right guidance and resources, and our team can help you to achieve that. Our team is providing advanced informations about Elliott Wave theory in real time. The Elliott Wave Principle gives you a method for identifying the behavior of the markets and at what points the market is most likely to turn. We help new traders who are interested in Elliott Wave theory to understand it correctly. We are doing our best to explain our views as simple as possible with educational goal, because knowledge itself is power!