Elliott Wave Forecast Team
ElliottWave-Forecast.com
The $SPY has been trading higher since the summer of 2019's correction. The Index has made new all time high as we have been forecasting at Elliottwave-Forecast.com. It is currently still trading within the Super Cycle degree since 2009 and the expected extension is taking place. Below is the chart of the S&P 500 ETF:
$SPY is trading above the Super Cycle degree trend-line, but every single high is coming with momentum divergence in the RSI. The momentum divergence is typically happening within wave V. When we count the waves since 2009 low, a wave 5 extension can be happening in the Index. 2020 is looking like a very, very interesting year across the market and many extremes can be reached in time and price. The following blog explains our views and why the year of 2020 can be the year where Indices make a huge peak or a temporary peak.
2020 is also an interesting year where something should be happening to create the pullback across the world Indices. We believe the Super Cycle degree from 2009 low ends next year. When it ends, many factors will determine the Elliott Wave counts whether we are ending an ABC from all time lows or we are ending wave (III). One factor for example is the extensions in $SPY and whether the index trades above the 1.618 extension which comes at $319.00. Another factor is where the Yen pairs stand when the $SPY dip in 2020 takes place.
As we always said, the Market trades as a whole and understanding the correlations among instruments and groups are the key. The United States will have a very interesting political year in coming months and year. First of all, the Presidential Election will take place in November of 2020. Secondly, it's going through the impeachment process of the president. We can see as always the technicals calling the Market, but we can see a political reason to justify the biggest pullback since 2009. As we always said, we do not forecast or trade based on fundamentals or news events. However, we understand when The technical side starts sending warnings, there is always a reason for the pullback. In this case, the potential justification is the 2020 elections or the impeachment debate.
FURTHER DISCLOSURES AND DISCLAIMER CONCERNING RISK, RESPONSIBILITY AND LIABILITY Trading in the Foreign Exchange market is a challenging opportunity where above average returns are available for educated and experienced investors who are willing to take above average risk. However, before deciding to participate in Foreign Exchange (FX) trading, you should carefully consider your investment objectives, level of xperience and risk appetite. Do not invest or trade capital you cannot afford to lose. EME PROCESSING AND CONSULTING, LLC, THEIR REPRESENTATIVES, AND ANYONE WORKING FOR OR WITHIN WWW.ELLIOTTWAVE- FORECAST.COM is not responsible for any loss from any form of distributed advice, signal, analysis, or content. Again, we fully DISCLOSE to the Subscriber base that the Service as a whole, the individual Parties, Representatives, or owners shall not be liable to any and all Subscribers for any losses or damages as a result of any action taken by the Subscriber from any trade idea or signal posted on the website(s) distributed through any form of social-media, email, the website, and/or any other electronic, written, verbal, or future form of communication . All analysis, trading signals, trading recommendations, all charts, communicated interpretations of the wave counts, and all content from any media form produced by www.Elliottwave-forecast.com and/or the Representatives are solely the opinions and best efforts of the respective author(s). In general Forex instruments are highly leveraged, and traders can lose some or all of their initial margin funds. All content provided by www.Elliottwave-forecast.com is expressed in good faith and is intended to help Subscribers succeed in the marketplace, but it is never guaranteed. There is no “holy grail” to trading or forecasting the market and we are wrong sometimes like everyone else. Please understand and accept the risk involved when making any trading and/or investment decision. UNDERSTAND that all the content we provide is protected through copyright of EME PROCESSING AND CONSULTING, LLC. It is illegal to disseminate in any form of communication any part or all of our proprietary information without specific authorization. UNDERSTAND that you also agree to not allow persons that are not PAID SUBSCRIBERS to view any of the content not released publicly. IF YOU ARE FOUND TO BE IN VIOLATION OF THESE RESTRICTIONS you or your firm (as the Subscriber) will be charged fully with no discount for one year subscription to our Premium Plus Plan at $1,799.88 for EACH person or firm who received any of our content illegally through the respected intermediary’s (Subscriber in violation of terms) channel(s) of communication.
Recommended Content
Editors’ Picks
EUR/USD regains traction, recovers above 1.0700
EUR/USD regained its traction and turned positive on the day above 1.0700 in the American session. The US Dollar struggles to preserve its strength after the data from the US showed that the economy grew at a softer pace than expected in Q1.
GBP/USD returns to 1.2500 area in volatile session
GBP/USD reversed its direction and recovered to 1.2500 after falling to the 1.2450 area earlier in the day. Although markets remain risk-averse, the US Dollar struggles to find demand following the disappointing GDP data.
Gold climbs above $2,340 following earlier drop
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
After the US close, it’s the Tokyo CPI
After the US close, it’s the Tokyo CPI, a reliable indicator of the national number and then the BoJ policy announcement. Tokyo CPI ex food and energy in Japan was a rise to 2.90% in March from 2.50%.