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.

Kommentera:

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.