S&P500 Looking Bullish Mid-Term

S&P500 made a five-wave rise from the 2185 level, where a higher degree wave (IV) correction found support. That said, the mentioned five-wave rally can be an indication of where the trend can be going; to the upside. If that is the case, then we should be aware of further upside on the stock market, however, we should also be aware of pullbacks.

After a five-wave recovery develops, price starts to form a temporary pullback, a pause within a trend. In our case, this can already be happening, as higher degree wave A/1 with a five-wave move looks to have found a top at the 3234 level. Now, we are observing a three-wave set-back to occur in a wave II/B, with possible support/bullish reversal zone at the 2870/2600 region, where former swing low of a wave 4, and Fib. ratios of 38.2/61.8 can react as support.

All being said, after wave II/B fully develops, and we see a rise in five waves of a lesser degree, that is when bulls can regain control.

S&P500, daily

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!

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