The S&P 500 fell to 2021 last week, but managed to recover and close the period at 2039. The index experienced some weakness at the start of this week as well, falling to 2028, before resuming the uptrend and lifting the price to above 2072 so far. All these ups and down made trading a little difficult, but with the proper analytical method, traders might get out of the labyrinth with a profit. The chart below was sent to our premium clients on Monday, March 28th. It shows what the Elliott Wave Principle suggested might happen in the S&P 500.(some of the marks have been removed for this article)
As visible, we saw last week’s weakness as a good buying opportunity. We assumed the anticipated recovery “could be expected to take the index above the previous top at 2057”, while the invalidation level at 2009 remained intact. The updated chart below shows how the situation developed.
Fortunately, 2009 was never in danger. Instead, the bulls managed to reach and exceed the target of 2057. This market has been moving almost exactly as planned for months now and we are going to continue trusting the Wave principle for it. In fact, it is already giving us a hint of the S&P 500’s next move.
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 2070 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.
