Stocks recovered very nicely and sharply since the mid of February so a new bullish reversal is here. The reason for a bullish trend is a five wave rise from 1802 which is an impulsive structure that shows the direction of a trend. As such, we will continue to look even higher if we consider that the recent retracement down to 1980 psychological level has a corrective look, ideally wave II flat correction that is completed as the price made a nice bounce towards 2160 area. That said we believe a more bullish price action may follow.
S&P500, Daily
On the lower time frame, S&P500 is trading nicely higher with a clear impulsive personality away from 1981 area where the market completed a big corrective set-back. As such, we will look now much higher on stocks as the current rally should be made by five waves. At the moment, we see market trading very slow in the middle of a summer, so we believe it’s just a pause within an uptrend. We are looking at wave four now that can be a triangle which should send the price to a new high; up into wave 5), possibly even to 2200 region.
S&P500, 4H
