Elliott Wave Analysis: When Will the S&P 500's Correction End?
Elliott Wave Insights on S&P 500
The S&P 500 has experienced a 2.64% decline since its peak on October 17, now viewed as a short-term corrective wave. In a recent analysis by EduwaveTrading, an expert in the Elliott Wave theory, it was indicated that the market has been in a bullish phase since August 2024 and is now encountering corrective wave 4.
Market Analysis and Predictions
According to EduwaveTrading, the peak for wave 3 was observed at 5,890 on October 17. He forecasts that next week might see the completion of this complex corrective wave, initiating wave 5.
- Suggested Trading Strategy: Wait for wave 4's end, followed by a bullish order flow.
- Notable market events: US presidential elections on November 5 and the FOMC meeting on November 7.
Economic Context Surrounding the Correction
Investor sentiment is clouded by potential election outcomes, notably concerning Kamala Harris, perceived negatively for the stock market. Current concerns include:
- Rising Gold Prices: Indicating a shift to risk-off assets.
- US Treasury Bonds: Showing concerning trends as noted by analysts.
Despite these fears, the S&P 500 has seen significant gains, but caution is advised as the market anticipates future movements.
In volatile periods, maintaining a solid strategy is essential, as exemplified by Warren Buffett's recent stock liquidations.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.