All Entries in the "S&P500" Category
S&P 500 breaks higher: update 2 June 2009
After repeated failed attempts to break the support at 880 levels, the S&P500 index has finally rallied to fresh 2009 highs. Where does this leave the Elliott wave analyst who has been looking for an eventual move lower towards 780?
S&P500 Elliott Wave update:21 May 2009
When we are seeking an imminent reversal we are happy to spot anything that seems to support our view! This is a normal trader behavior. There is nothing wrong about that, because we could still be right! However, I suggest that you read about what an “Outside Day” is. As I have been saying, we [...]
S&P500 Update: May 19, 2009
One of the hardest decisions a trader makes is to take a punt against the current trend. It is seldom profitable immediately, and he worries how far away the market will go before his view becomes the accepted thinking. The short term trend continues to be positive and the futures are indicating a higher opening. [...]
S&P500 ready to dive?
On 5th May I presented you with this chart. The market more-or-less behaved as expected. In a more recent update I warned you to be patient until we get the first clue of a topping out is shown to us. The reason is quite simply we won’t know how far an extedning wave will go [...]
S&P500 remains resilient
In recent updates I have called for the S&P500 index to remain well bid, warning we could see 937. That level is very close, and not far from another resistance at 943. I continue to remain positive in the very near term for the market
S&P500 continues its rally
The 886 level in S&P didn’t hold for long, and any shorts there should have been stopped just above that level. The market continues to remain strong, and there is a pretty good chance we will reach 937. See what happens there. Don’t sell until we know a top is in place. As we are [...]
S&P 500 update: where is the top?
You will recall that in my last update of 23rd April, I had warned of another move higher. Once an extending fifth wave is completed, and we get a first sell-off, we should always be on the alert for a retracement all the way back to the highs, and potentially even marginally higher levels. It [...]
S&P500 index: is a top already in?
First, remember that we are not discussing a major top for S&P500. What we are focusing on now is the top around 875 because we determined that a five wave rally that had a diagonal triangle in its fifth wave position is badly in need of a correction.
S&P500 Elliott Wave update
We got the break in the index as anticipated, and the recovery looks good too. Be alert for a failure inside the wedge so you can join in soon after. Here is your chart. S&P500 Elliott Wave update Related S&P500 links: Was that the stock market bottom? SNP500 revisited S&P500 and Citi Fifth wave extensions [...]
Ending Diagonal Triangle in S&P500?
On 8th April, we saw the possibility of the markets moving higher as part of the final leg of an Ending Diagonal Triangle in S&P500 index. As the attached chart shows, this up move has materialized. The question now is should we put on short positions around the current levels?
S&P 500: Potential Ending Diagonal Triangle
On 1st April, when the S&P500 index was at 797, I suggested that we will get a move to just short of 850 but that will be about where the rally will fail. After reaching 845 on 2nd April, the market has been gently easing lower. The analysis done on 1st April used the daily chart. [...]
Harmony in markets: S&P500
One of the key take-aways from Elliott Wave Analysis is that there is an underlying harmony in the markets, even though it appears chaotic while the moves are happening. It requires some effort to determine where the likely pressure points are, and a lot of guts to stake some money when those levels are reached
What is a significant rally in the stock markets?
I read the following in Friday’s FT and thought it is useful to quote here. “History provides some useful benchmarks. After the horrible 1973-74 bear market, equities traded up, though unevenly, until 1982 with six specific bull runs that generated an average 32 percent gain”…but, a buy-and-hold strategy over that time period yielded only 9% compounded annual gains, which merely kept pace with inflation.
Fifth wave extensions can make you rich!
The easiest way to make money in any market is after a fifth wave extension. While identifying the precise end point of an extension is often a challenge, you can become quite rich by joining in once the correction starts.
S&P 500 and Citi
If my analysis of S&P500 (and Nasdaq) suggest that we will get a 5th wave move down, then how can I recommend buying Citi from $11.54? This is a valid question, and any good analyst should have thought that through. What I did, instead, was to look at the index and the stock separately.