We have noticed nice monthly close and bullish candlestick on the SP500 after touching the 38.2% Fibo. retracement, which is ideal support for wave (IV).
#Drop is in three waves (smaller time frame) which can be a corrective pause within an uptrend. I will always try to label the move from the low in downtrend, or from the high in an uptrend, as a corrective pattern if possible, since I know that statistically, odds are then in my favor.
#Normally the fourth wave will retrace the 38.2%. I give it more respect when the price actually reverses from it.
#I like to make a combination of analyses; this candle goes nicely with Elliott wave supports.
#Stocks were bearish for the last few months on hawkish FED, but some speculators are already looking towards new change in policy cycle, after hikes are done, possibly later this year.
Take care.
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