S&P 500: Bulls Remain Intact After Much-Needed Dip

TechnicalHunter
08-19

The $S&P 500(.SPX)$ 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.

SPX Weekly Chart From August 12SPX Weekly Chart From 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 $S&P 500(.SPX)$ hits new all-time highs?

SPX Weekly Chart From August 19SPX Weekly Chart From August 19

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.

S&P 500-4 Hour Chart August 19S&P 500-4 Hour Chart August 19


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Comments

  • RitaClara
    08-19
    RitaClara
    Nice analysis! Bulls holding strong in the uptrend. Exciting times ahead! [Heart][Bless]
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