S&P500 Forecast: Is 4300 the Next Stop on the Market’s Upward Climb ?

We said in a blog article ten days ago that the S&P500's (SPX) anticipated decline was probably over.

This was done on the assumption that the market will rise to the $4300–4500 range, which has been our major anticipation for months. We have used the Elliott Wave Principle (EWP) in our study to influence our market prognosis, which we will go into more detail about in this post.

Yesterday, the S&P 500 touched the optimal third wave level: $4195 vs. 4199,... It should be on a modest fourth wave currently, hopefully reaching $4100+/-10, before a fifth wave aims for $4260+/-20. The index will then likely drop for many weeks before making a rebound to the optimal price of $4395+/-25. ”

Even though it fell short of our expectations, we were right since the index bottomed on Friday, February 10, at $4060, which is only 0.7% below the goal range we established ten days earlier.

The index is now in a rallying phase. In light of this, the green W-4 we predicted has probably reached its bottom, and the green W-5 to preferably $4260+/-10, maybe as high as $4295+/-10, should be under way. Look at Figure 1 below.

The $4300 is the main concern

According to the EWP, an impulse's third and fifth waves often reach the Fibonacci extensions of 161.8% and 200.00% of the length of the first wave, measured from the low of the second wave, respectively.

We concentrate on the green W-5 and the red W-iii in this instance. Red 161.80% extension is at $4295 and green 200% extension is at $4258. Therefore, we should anticipate W-5 of W-iii to target $4260-4295 as long as Friday, February 10, low at $4060 holds.