The S&P 500 index just took out the $1960 mark. Could this renewed strength be expected three weeks ago? Should we look for the fundamental reasons behind S&P 500’s price swings, in order to be able to predict what the market is going to do next? Our answer is “NO”. The S&P 500 is one of our premium instruments. The next chart was sent to our premium clients on February 8th, when the index was trading near $1879. It shows how we, applying only the Elliott Wave Principle, thought the situation should develop(some of the marks have been removed for this article).
As you can see, we were expecting one last decline in wave (c) to make a bottom just below $1810. After that, the S&P 500 was supposed to reverse to the upside and climb above the previous swing top at $1947. Currently above $1960, here is how the index looks like today.
Prices fell to $1807. Then, the bears ran out of power and the bulls finally returned. This situation is just another example of how accurate the Elliott Wave principle can be. It earned our trust long time ago and, judging from this forecast, it has already earned our premium clients’ trust as well. Why not give it a chance to earn yours too?
What to expect from now on? Is the S&P 500 going to continue even higher or the resistance of the 1965 level 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.