The stock market is back in bullish mode after yesterday’s rally on the S&P500 back close to all time highs. At the same time the USD has turned down across the board, similar was with JPY so it looks like the risk-on mode is still in play.
On the S&P futures market we see a nice clean bullish pattern on the intraday charts after only three wave retracement down to 1833 which was a contra trend move, now finished. In fact, a reversal from that low looks impulsive and already took out the upper side of a corrective channel so bias is bullish for move above 1860, ideally to 1870 in sessions ahead. A demand zone for this market is at 1840-1846. Any longs taken in that zone should have stops placed beneath 1833 invalidation level.
S&P500 (Mar 2014) 1h Elliott Wave Analysis
Written by www.ew-forecast.com
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