Stocks recovered very nicely and sharply since mid of February so new bullish reversal is here. Reason for a bullish trend is a five wave rise from 1802 which is an impulsive structure that shows direction of a trend. As such, we will continue to look even higher if we consider that recent retracement down to 1980 psychological level has a corrective look, possibly wave II flat correction that appears completed.
On the lower time frames, S&P500 is trading nicely higher for the last few sessions, now in the middle of a red wave 3) that can continue up to around 2170-2190 area in the next few days after a completion of wave 2) at 2065. So as long this level holds we believe that S&P will stay bullish for new all-time highs.
About Gregor Horvat
Gregor Horvat, based in Slovenia, has been in the forex markets since 2003. He is a technical analyst and individual trader who has worked for Capital Forex Group and TheLFB.com. He also is founder of forex services on www.ew-forecast.com. EW-Forecast.com provides technical analysis of the financial markets, highlighting behavioral patterns based on the Elliott Wave Principle (EWP). Website: http://www.ew-forecast.com/ Try EW-Forecast.com’s Services Free For 7 Days at http://www.ew-forecast.com/service