SP500 – End of Coronavirus Sell-Off

by WaveTrack International| March 23, 2020 | 4 Comments

The SP500 has just approached downside targets of 2151.00+/- to 2174.00 in overnight trading. This is completing a five wave impulse downswing from February’s high of 3397.50. The final sequence of a multi-year a-b-c, 3-3-5 expanding flat pattern that began from the Jan.’18 high of 2872.87. The outlook is now turning bullish

SP500 – End of Coronavirus Sell-Off

SP500 Futures – E-Mini – 80 mins. – Forecast by WaveTrack International

Last week’s downside targets of 2151.00+/- (futures) has been approached in overnight Asian/European trading to a low of 2174.00. This is in the price proximity for ending the entire five wave impulse downswing as minor wave c. from February’s high.

Meanwhile, an overnight sell-off in Japan’s Nikkei 225 traded to lower-lows. However, testing corresponding downside targets of 15722+/- to 15600 before staging a resounding bullish reversal-signature trading up to 18220.

In Europe, the benchmark Eurostoxx 50 and Xetra Dax indices have opened with a gap lower in the cash markets but have held above last week’s lows, triggering a bullish divergence with U.S. indices.

The US$ dollar index is testing overhead resistance around the 102.79+/- area. If all goes according to plan, last week’s high at 102.99 ended the entirety of the a-b-c zig zag correction that began from the Feb.’18 low of 88.26. A resumption of its 7.8-year cycle downtrend is about to begin.

Conclusion

The completion of multi-year expanding flat patterns across several global stock indices, including the benchmark SP500 is confirming the end of the coronavirus sell-off. A resumption of the secular-bull uptrend is about to get underway.

It will, of course, take longer for global economies to catch-up with gains in financial markets! However, the fact that major indices are already signaling a turn-around must be heralded as good news amidst the continuing efforts to stem the spreading of the coronavirus.

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Category: S&P 500, SP500, Stock Index, Stock Indices, US$ Index, US-Dollar Index

Comments

4 Responses to “SP500 – End of Coronavirus Sell-Off”

Collin Goddard
March 24th, 2020 @ 3:34 pm

Is there going to be an minute abc pattern in this bottom pattern, where we test/ double bottom on a daily chart? Or has it already done that on a minut
basis… tia
Wavetrack International
March 24th, 2020 @ 9:04 pm

Hi Collin, Thank you for your message. We don’t expect any correction that makes a double-bottom ‘cos the decline was so rapid that this normally triggers a v-shaped reversal. Very best wishes

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SP500 – End of Coronavirus Sell-Off