-- Published: Friday, 29 May 2020 | Print | Disqus
For those that do not know, Carolyn Boroden (The Fibonacci Queen) has joined the analyst team at Elliottwavetrader. So, she and I are endeavoring to present our combined perspectives to outline our general expectations over the coming weeks, as we begin this series of articles.
There are times when the market provides us with clear indications. And, as proceeded through March, Carolyn and my work were focused upon the region just below 2200SPX for a potential bottoming in the S&P500. Specifically, Carolyn had key price parameters in the 2165-2193SPX region, and the bottom of my support region was pointing towards 2187SPX, with my next lower support below that in the 2160SPX region. My expectation at the time was that the market was going to hold the 2187SPX support and rally towards the 2650-2725SPX region from there.
Moreover, Carolyn identified a confluence of multiple Fibonacci time cycles that came due between 3/24-26 and calendar day projections that came due on 3/22-23.
As we now know, the bottom for the market was struck at 2191.86 on 3/23.
At the time, neither of us were certain that the bottom struck on that day would be the lasting bottom, but we both recognized there was strong potential for that to be the case. My expectation was that the market would rally from the 2200 region up towards the 2650-2725SPX region. And, once we were able to exceed that 2725SPX resistance, that opened the door to the market having struck a major bottom.
While the smaller degree structure is a bit questionable at this time, both Carolyn and I see potential for the SPX to exceed the 4000 mark. In the near term, as long as the market holds over the 2760/2788SPX support region, there is strong potential for us to continue higher towards the 3234SPX region next.
However, Carolyn’s next time cycles are due between 5/26-5/29, which suggests that we could see some form of near-term topping within the 3065-85SPX region, to be followed by a test of the cited support region noted above.
Overall, both our work suggests that the market has struck an important bottom back in March. And, as long as pullbacks continue to hold support, our combined analysis seems to be pointing towards the 4000SPX region, and potentially even higher than that in the coming years.
See charts illustrating Avi's wave counts and Carolyn's Fibonacci targets on the S&P 500.
Avi Gilburt is a widely followed Elliott Wave analyst and founder of ElliottWaveTrader.net, a live trading room featuring his analysis on the S&P 500, precious metals, oil & USD, plus a team of analysts covering a range of other markets.
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-- Published: Friday, 29 May 2020 | E-Mail | Print | Source: GoldSeek.com