S&P 500: Bulls Remain Intact After Much-Needed Dip
2024.08.19 07:16
The made a nice August slowdown based on the seasonality chart, but we warned about a huge green weekly candle away from the base channel resistance line that acted as a support back on August 12.
A week later, we got another huge green weekly candlestick, which indicates that bulls are strong, so $stocks will most likely stay in the uptrend in current risk-on sentiment. How long until the S&P 500 hits new all-time highs?
Looking at the 4-hour chart from the Elliott wave perspective, we can also see a sharp three-wave A-B-C decline, suggesting a correction within the uptrend. The reason why bulls can be back in the game is an impulsive recovery and broken trend line, with an extended third wave rise to 5600 area that looks like a wave (3) of a five-wave bullish impulse. So, more upside is expected after any near-term retracement, while price trades above 5358 invalidation. Overlap with this level will put more complex corrections in play.
