Short & Long Term Forecasts

Mission One of this website, (ewsp500) is to provide a Daily Short-Term, and a periodically updated Longer-Term Price Forecast for the S&P 500 Index. The forecast will be based primarily upon applying the Elliott Wave Principle and/or Theory along with technical indicators such as; Fibonacci Ratios, Momentum, Exponential Moving Averages, and Trend Lines. The S&P 500 is a good qualifier as it meets the “large herd requirement” necessary to use the Elliott Wave Theory in that it is heavily traded and a large number of stocks participate. In limiting the focus of this website (ewsp500) to the S&P 500, ewsp500 will be able to spend more time and attention on this one Index. This is not to say that the Dow and NASDAQ will not be used and charted at times, but these Indexes will be used to clarify and support the best call for the S&P 500. The primary focus of this website, (ewsp500) is to support Professional Traders, Institutional Investors and others who are looking for an objective wave count of the S&P 500 along with projected turning points and/or targets.

The Daily Short Term Price Forecast at ewsp500 is geared towards identifying “tradable waves or trends” on more of a daily and/or weekly basis. The aim here is to be able to identify potentially strong turning points in order to “position trade” the markets, daily and/or weekly. Ewsp500’s definition of a good position trade is when the trader is able to enter the market in a timely enough fashion to participate in the next tradable wave or trend. Then upon becoming positive in the trade, the trader would enter a “stop” if used to lock in a win, or simply choose an exit point. (Really our goal is to have traders remain in the trade, participating in the balance of the wave or trend). To use the analogy of the forest and the trees, the Daily Short Term Financial Market Forecast will focus on the “trees” -the smaller wave formations, versus the “forest” –the larger wave formations as found in the Longer Term Price Forecasts.

The Longer Term Price Forecast at ewsp500 is geared towards both the Trader and Institutional Investor who may have a longer term horizon or interest. These forecasts may vary in terms of time, but they would normally be no less than a month, and they generally would cover the three to six months time period. Super Waves going back a considerable period of time will also be presented and updated periodically. The “Time Principle” is active here. The time principle is best illustrated in a typical weather forecast. The weather forecast becomes less predictable the farther out you go, and so it follows, the longer the period of time, the less predictable a Financial Market Price Forecast will be. This is not to say that a Long Term Financial Market Price Forecast can’t be depended upon, but it does imply that, as additional information is provided in the future, the forecast may change. A Long Term Financial Market Price Forecast requires a greater amount of flexibility for both the Analyst and the User of such information. The Long Term Financial Market Price Forecast will focus on the “forest” –the larger wave formations, versus the “trees” –the smaller wave formations as found in the Daily Short Term Forecasts.