Last week was very disappointing for the S&P 500 bulls with the index falling from 2079 to 2033. And just when the bears thought they were in control, the market found a way to break their hearts too by rallying back up to 2083 so far. The markets are notoriously known for changing direction, when traders least expect, but is there a way or a method to predict and take advantage of its swings? Fortunately, there is and we used it to prepare our premium clients for the latest rally by sending them the following chart on Monday, April 11th.(some of the marks have been removed for this article)
As visible, the Elliott Wave Principle suggested that “as long as the invalidation level at 2033 holds, targets above 2079 are plausible.” There was a short period of hesitation at the start of the current week, which caused the price to fall to 2036.65. However, 2033 was never reached and that is the most important thing. Then, the bulls finally took charge and led the price to 2083 as of Wednesday, April 13th. The next chart visualizes this development.
The 23.6% Fibonacci level proved to be strong enough to hold the bears. The Wave principle once again managed to not only prepare us for the next move, but also to provide specific stop-loss and target levels. What else could a trader possibly want?
What to expect from now on? What is the bigger picture saying? Is the S&P 500 going to continue even higher or the resistance near 2085 would turn out to be too strong for the bulls to breach? Prepare yourself for whatever is coming. Order your on demand Elliott Wave analysis now or pre-order the one due out next Monday at our Premium Forecasts section. Stay ahead of the news in any market with the Elliott Wave principle.