exc-64cc8298dad01206c9125fa6
The S&P 500, an American stock market index, has been making waves in the financial sector. This article presents an in-depth analysis of its Long Term Elliott Wave Update. The Elliott Wave principle is a form of technical analysis that finance traders use to analyze financial market cycles and forecast market trends.
The Spectacular S&P 500
The S&P 500, a market-capitalization-weighted index of 500 of the largest publicly traded companies in the U.S., is a key indicator of the health of the U.S. stock market and the U.S. economy.
The Elliott Wave Principle
The Elliott Wave Principle is a form of technical analysis that looks for recurrent long-term price patterns related to persistent changes in investor sentiment and psychology.
Wave 1
This is the initial wave, where the market makes its initial move upwards. This is typically the point where the S&P 500 starts to gain momentum.
Wave 2
This wave is characterized by a correction from the initial gains made in Wave 1. In the case of S&P 500, this correction was from 4805 to 3490.
Wave 3
This wave is usually the longest and the most powerful. It is typically 1.618 times the percentage gain of Wave 1. For the S&P 500, this would be 2.19 X 1.618 = 3.533 X 3490 or 12,333.
Fibonacci and Wave Breakout
The Fibonacci retracement level is a key technical tool used in Elliott Wave theory. The S&P 500 took out the long-term .786 Fibonacci retracement level of 4523, signaling the start of a new bull market 3 of 3 in the S&P 500.
Understanding Fibonacci Retracement
Fibonacci retracement is a term used in technical analysis that refers to areas of support (price stops going lower) or resistance (price stops going higher). The Fibonacci retracement levels are 23.6%, 38.2%, 61.8% and 78.6%.
The Breakout
The breakout occurs when the price of an asset moves above a resistance area, or moves below a support area. Breakouts can signal the start of a new trend.
The Power of Breakouts
Breakouts are significant on a long-term chart. They indicate the start of a new market phase. In the case of the S&P 500, this breakout is even more powerful as it represents the start of a new bull market 3 of 3.
S&P 500 Chart
The Future of S&P 500
The future looks bright for the S&P 500. With the breakout of the .786 Fibonacci level, investors can expect a bullish market.
Conclusion
Understanding the S&P 500 and the Elliott Wave Principle is crucial for any investor. With the recent developments and breakouts, the S&P 500 is set to make new strides in the financial market.
Disclaimer: The information provided in this article does not, and is not intended to, constitute financial advice; instead, all information is for general informational purposes only.
