Hello traders and investors. I am Radi Valov, a professional trader and today I will share with you you a quick update of my Elliott Wave analysis of US indices. Those of you who have read my previous Elliott Wave analysis know that since the evening of February 24 I have released an update for an important bottom in S&P 500 and Dow Jones industrial average.
04.02.2022: Elliott waves signal for S&P500
31.01.2022: Elliott waves signals for SP500 and Dow Jones
Despite the negative events in the recent weeks and even more negative sentiment in the market, last week of all US indices only Nasdaq made a new bottom. This divergence is usually observed towards the end of movements and is a great indicator.
After the bottom on February 24, I consider the rise in the S&P 500 and the Dow Jones as the leading diagonal for wave 1 (with red in the graph) and the deep retest of the bottom in both indices as wave 2. I must note that market sentiment during wave 2 was more negative than when it reached the bottom, which is a great confirmation of the bullish scenario and a very common phenomenon observed in the second waves.
We are currently developing at the beginning of wave 3 and I expect the upward movement to continue this week without significant adjustment to the area around 3550-3580 for S&P 500 and 35500-35800 for the Dow Jones.
In the medium term, according to my preferential Elliott Wave analysis, the S&P 500 / Dow Jones industrial average will move in the upward price channel on a daily chart and in the second half of the year, we will have new historical highs. The potential target for wave 5 is the area around 4970-5200 for S&P 500 and 37700-39000 for Dow Jones.
All information has been prepared by TraderFactor or partners. The information does not contain a record of TraderFactor or partner’s prices or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may read it. Past performance is not a reliable indicator of future performance.