Sharp move up last week to 2070 on S&P500 suggests that index is making an extended fifth wave, so uptrend can stay in play even till the end of the month. We see current price in subwave (iii) of 5 so more upside should follow after wave (iv) pullback is complete. There is room for a rally to 2100 as long as 2007 support holds.
On the intraday chart we see a nice and slow pullback which has a corrective personality so it confirms the fact that retracement is just temporary and part of incomplete uptrend. We see it as a blue wave (iv) as already mentioned above, which will typically retrace back to the area of a former wave four and for 38.2% compared to wave three. In our case we can see this interesting zone coming in at 2050-2053 so ideally price will bounce higher from here. We think that uptrend will continue to 2085 soon.
Trade can be as follows:
Long at market
Stops beneath 2040
Target 2100
Move stops to breakeven when market moves to 2074.
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