A lot of folks expected a stock market crash after Western countries imposed sanctions on Russia this weekend. They were wrong again. Equities did not crash despite having enough narratives to justify a waterfall selloff.
Bears have to question what it takes to bring the $SPX down?! Similar financial events sent shockwaves through markets during the Russian crisis in 1998. Nonetheless, US equity indices closed Monday’s trading session slightly higher than before the invasion began.
Fundamentals were different in 1998 than they are today. Macro indicators are constructive, and sustained bear markets only unfolded in recessions. Moreover, behavioral evidence is also positive from a contrarian perspective. Technical signals line up on the same side of the ledger.
The most likely Elliott wave path remains on track for an all-time high during the next few weeks. A 4th wave of intermediate degree probably unfolded during recent weeks. The correction either ended last week or has a final leg left to the downside. Bulls want to see a sustained breakout above 4488.
Bears have to question what it takes to bring the $SPX down?! Similar financial events sent shockwaves through markets during the Russian crisis in 1998. Nonetheless, US equity indices closed Monday’s trading session slightly higher than before the invasion began.
Fundamentals were different in 1998 than they are today. Macro indicators are constructive, and sustained bear markets only unfolded in recessions. Moreover, behavioral evidence is also positive from a contrarian perspective. Technical signals line up on the same side of the ledger.
The most likely Elliott wave path remains on track for an all-time high during the next few weeks. A 4th wave of intermediate degree probably unfolded during recent weeks. The correction either ended last week or has a final leg left to the downside. Bulls want to see a sustained breakout above 4488.