S&P 500 analysis and outlook - rough start but ends well?
Here is an update of my analysis for the S&P 500. Watching futures this morning I can see that we are headed for a drop this morning. Futures are on the last leg (C) of a correct wave. There seems to be 2 subwaves that need to complete in that last coercive wave as of writing this at 8:45am. If that is true, then at the opening bell it is going to look pretty ugly. I expect the retail crowd to jump on that and drive it down to the 3080 (maybe even 3060) level by around 10:30-11:00 am (could end sooner). Maybe we will gap down but rally right back up? I expect that the market will shift into rally mode and push to 3200 in the next day or so. After that, there should be a noticeable correction back to the 3100 level before a serious rally goes into effect.
Lets see how this plays out.
Hope this helps and happy trading.
Lets see how this plays out.
Hope this helps and happy trading.
Gapped down followed by 1-2 minute rebound and then bottomed out (long shadow) at 3095 at 9:37am. There were 2 minutes of strong bullish green candles that rallied quickly back to 3118. That was a much stronger recover than I expected. That is a good sign and it seems that market is slowly drifting upwards now through the early afternoon. Be intersting to see how the day ends. A strong rally at the close or a taking of profits?