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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)