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.
