SP500 + Nasdaq 100 = Bullish!

by WaveTrack International| December 10, 2018 | 1 Comment

SP500 and Nasdaq 100 holding above Oct/Nov. lows – Bullish!

The SP500 has traded initially lower from Friday’s closing session but is now responding to support at 2610.25+/-. Only a fraction below the late-November low of 2626.00 but above the all-important late-October low of 2603.00.

SP500 – Elliott Wave Forecast 28th November 2018

In fact, the recent decline from 2814.00 is consistent with completing a horizontal flat pattern. This was the original concept featured in the November 28th report – see fig #1. The idea behind this scenario when, at the time, the SP500 was just turning higher from 2626.00 was that it would re-test towards the previous high at 2818.00 (2815.50 cash index). Afterward decline in a five-wave pattern back towards 2626.00+/- to complete wave (b) – see red-boxed rectangle, left.

Those price movements have now been accomplished basis today’s decline to 2610.25+/-.
In the November 28th report, we commented that a horizontal flat pattern was possible for wave (b) because it would CONSUME MORE TIME, allowing the next upswing as wave (c) to test the upper/declining boundary line of the developing triangle pattern. That seems to be confirmed from this latest price action. Upside targets as before, towards 2855.00-82.00+/-.

Conclusion

The markets are portraying all the characteristics of nervousness, anxiety and distress which commonly occurs at ‘price-extremes’. In this case, at an important low. The dollar interest rate yield-curve inversion at the US02-05yr term and trade tariff concerns are playing their part – but if Elliott Wave analysis has anything to say, then markets are still building an important platform of support which leads to higher-highs over the coming weeks and months ahead.

Furthermore, the latest update on the SP500 and Nasdaq 100 can be found in WaveTrack bi-weekly EW-Compass report on the STLG/USD, EUR/USD, US Dollar Index, Bitcoin, US Dollar Index, Crude Oil, EuroStoxx, Russell 2000, Dow Jones 30, Dax, ASX200 and more! Don’t miss WaveTrack’s regular updates in our bi-weekly EW-Compass Report! Ensure you’re tracking our Forex forecasts – subscribe online for the EW-COMPASS REPORT.