This time I again use Theory to analyze the historical movement of the S&P500 since 2009. In this decade, we witness a classic 5-wave impulsive wave. The division of the 5 constituent waves are indicated in the right chart, which is quite self-explanatory. What a pity, in early 2019 was actually the end of a running flat. The S&P500 then persistently went against all the short sellers' prediction.
In my left chart, it is a breakdown of the (5) wave indicated in the right chart. I so far see it goes in the shape of . Right now the S&P500 might be soon finishing the 3rd wave. A technical correction 4th wave will happen soon. In fact, the also to a certain extent meets the fundamental. The fact that the S&P500 will be reaching the all time crest by the end of 2020, which is also the time US presidential election ends. Hope everyone of us can get some returns before the fireworks end. Not sure if it also indicates/predicts Sanders going to win the presidential election? Coz the Wall Street heavyweights might react badly towards the president-to-be socialist Sanders? Anyway, I am not really know a lot US politics indeed.
Happy trade. Analysis from a hongkonger.