The S&P 500 was very indecisive at the start of the week. The index has been moving sideways between 2130 and 2154 until Wednesday, when the bulls finally managed to break out of the consolidation and continue higher. We even saw 2180, before today’s retreat, so those, who have been bullish near 2130 on Monday, must be feeling very good on Friday. Our premium clients are among the happy bulls, since the S&P 500 analysis they received before the markets opened on Monday, September 19th, included the following chart.(some of the marks have been removed for this article)
This was not the only chart they got with their analysis, but it was the most important one for trading purposes. As visible, Elliott Wave Principle not only allowed us to form a positive outlook on the S&P 500, but also provided us with a specific invalidation level for this count at 2114. Basically, that is all a trader needs to know – the most likely scenario and a stop-loss level. The update chart below shows how the S&P 500 looks like today.
Once again, Elliott Wave analysis was all you need to make a profitable trade. The critical level of 2114 remained intact. In fact, the bears could not even get close to it. Most would say that the S&P 500 jumped, because the Fed announced its decision to keep interest rates unchanged on Wednesday. Fine, but our premium clients have been prepared for that rally three days before the Fed’s announcement. That is how you stay ahead of the news with the Elliott Wave principle.
