Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

S&P 500 'E Wave' Ready to Rally to Bull Market Highs

By

A close over 1409 will confirm the "E wave" has begun in earnest.

PrintPRINT
In recent updates, I have been projecting a series of ABCDE waves to take the bull market to post March 2009 highs in the 1425-1445 ranges. The recent pullback was expected as what I was calling a "D wave" pullback, with an E wave to come. These final fifth waves or E waves can be extension waves or relatively benign, hence causing difficulty in forecasting the upper ranges.

In the case of the S&P 500 Index (^GSPC), we have had a strong rally from the 1267 lows in early June to 1409 highs so far (the C wave highs) and recently a pullback into the 1390s (The D wave). This next leg up should carry the market indices toward the 1440 2008 interim highs which begat the last 5 wave down leg of the bear cycle that ended at 666 on the S&P 500. A case of down the mountain and up the mountain, if you will, since the 2008 highs to current pricing conditions at 1404.

Once this E wave completes in the 1425-1445 ranges (with an outside shot at an extension blast to 1495) we should expect a fairly significant correction of the entire move from March of 2009. This final rally leg could top anytime between Aug 13 and August 22 as I last updated, with potential to spill over into early September.

A close over 1409 will confirm the "E wave" has begun in earnest; you may want to prepare yourself as it could be the final blast before some rains begin to pour in the fall.



Twitter: @activetrading

Editor's Note: David Banister is the chief investment strategist and co-founder of ActiveTradingPartners.com, a small-cap portfolio and market advisory service.

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE