S&P 500 Waves Update - Good day but more down to come this week?
Today was a nice rebound in the major corrective wave right up to the trading channel, but my wave analysis says there is one more down wave left. I look for more down in the next few days. The fact that the S&P 500 is riding the resistance side (top side) of the channel is good news in my opinion. It typically indicates a bullish sentiment. Much better than riding down the support line (bottom side).
Where the next wave ends will tell us a lot about the next month. There is a lot of positive economic news (housing, employment - if less bad is good?), but there are still a lot of strong undercurrents (coronavirus cases increase, bankruptcies). I expect a lot of whipsaw action over the next few weeks as earnings come in while coronavirus flare ups continue. Will be an interesting time to watch the market.
Where the next wave ends will tell us a lot about the next month. There is a lot of positive economic news (housing, employment - if less bad is good?), but there are still a lot of strong undercurrents (coronavirus cases increase, bankruptcies). I expect a lot of whipsaw action over the next few weeks as earnings come in while coronavirus flare ups continue. Will be an interesting time to watch the market.
Comment:
The S&P was clearly on the way down but then a big pump at the end of the day. I would guess it is a test/spring for a down day tomorrow. I am going with a gap down tomorrow.
