Last night, Stocks surged, sending U.S. benchmark indexes up the most since May, while the dollar and Treasuries slid as growth in American retail sales bolstered optimism in the earnings season and investors speculated European banks will pass stress tests. (Source: Bloomberg )

I was monitoring S&P 500 recently and interestingly, I found they have formed a complete Elliott Wave (a model used to predict stock market movement) since last rebound. (refer to the chart below)

I agree with what London-based Mike Lenhoff, chief strategist at Brewin Dolphin Securities Ltd., said, whose parent company oversees $33 billion

“The markets were ready for a rebound, all they needed was a trigger. In this case, they are getting a trigger from the bank stress tests,”

Fundamentally, the world is in a much better shape than last year. If the rebound is accomplished, we may see another Elliott Wave, and that is really a good news for the long investors.

About the Author

Ivan Guan is the author of the popular book "FIRE Your Retirement". He is an independent financial adviser with more than a decade of knowledge and experience in providing financial advisory services to both individuals and businesses. He specializes in investment planning and portfolio management for early retirement. His blog provides practical financial tips, strategies and resources to help people achieve financial freedom. Follow his Telegram Channel to join the FIRE community.
The views and opinions expressed in this article are those of the author. This does not reflect the official position of any agency, organization, employer or company. Refer to full disclaimers here.

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