What If You Could Spot One of History’s Fastest Rallies Before It Began?
By Elliott Wave International

On April 2, while bearish sentiment was extreme and many expected lower prices, subscribers to Elliott Wave International's Intraday Stocks Pro Services were shown a very different setup in the S&P 500.

In his 3:35 p.m. intraday update, analyst Robert Kelley posted this chart and wrote:

“The larger count labels today’s low as the bottom of a second wave pullback. That’s due to the clear three-wave drop into today’s low. If this count is right there will be a sizable advance next week. For now prices need to hold above 6501.90, the .786 retracement of wave iii so far, to keep this scenario in preferred status.”

The setup was classic Elliott wave analysis: a completed five-wave advance followed by a corrective three-wave decline — a pattern that often signals the trend is preparing to resume.

And notably, this wasn’t a vague bullish opinion. It came with a clearly defined risk level.

What Happened Next?

The labeled wave ii low held. And prices exploded. From that April 2 low, the S&P 500 surged to 7123.76 — a move of roughly +8.8%, part of what Kelley called “one of the fastest rallies in history.”

This illustrates how Elliott wave analysis can help identify important market turning points before they become obvious in price or headlines.

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This article was syndicated by Elliott Wave International and was originally published under the headline What If You Could Spot One of History’s Fastest Rallies Before It Began?. EWI is the world's largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.

Elliott Waves Subsume Classic Technical Chart Patterns

By Elliott Wave International

Traditional technical-analysis chart patterns fit within the broader framework of the Elliott wave model.

Elliott waves subsume head and shoulders tops and bottoms, rounding tops and bottoms, triangles, rectangles, double and triple tops and bottoms, diamonds, falling and rising wedges, pennants and flags.

Let’s take just one example: the head and shoulders top. The excerpt below, from Elliott Wave Principle, shows how it fits within the Wave Principle:

In a normal wave development, wave five of 3 and wave 4 form the “left shoulder” of the pattern, wave 5 and wave A form the “head,” and wave B and wave one of C form the “right shoulder.” Wave two of C creates the return to the neckline that is typical of the pattern (below).

So, if you’re a fan of traditional technical chart patterns, the Wave Principle can consolidate them under a single model and help you determine which formations are most likely of real significance.

To learn more about Elliott wave analysis, read the definitive text on the topic -- it’s free.

This article was syndicated by Elliott Wave International and was originally published under the headline Elliott Waves Subsume Classic Technical Chart Patterns. EWI is the world's largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.

The Idea that Peace and War Drive Stock Prices Is a Myth

By Elliott Wave International

Does an event as momentous as war affect the trend of the stock market?

Most people think so.

But the data don’t back it up.

Wars have no consistent causal effect on stocks: Sometimes the stock market rises during large-scale conflicts. Sometimes it falls. Sometimes it does both!

Just examine these charts:

There’s no reliable connection between war and stock prices. It’s a MYTH.

Chapters 1 and 2 of The Socionomic Theory of Finance debunk 12 more myths that most investors fall for.

You can read the chapters for FREE now.

This article was syndicated by Elliott Wave International and was originally published under the headline The Idea that Peace and War Drive Stock Prices Is a Myth. EWI is the world's largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.

The Idea that Peace and War Drive Stock Prices Is a Myth

By Elliott Wave International

Does an event as momentous as war affect the trend of the stock market?

Most people think so.

But the data don’t back it up.

Wars have no consistent causal effect on stocks: Sometimes the stock market rises during large-scale conflicts. Sometimes it falls. Sometimes it does both!

Just examine these charts:

There’s no reliable connection between war and stock prices. It’s a MYTH.

Chapters 1 and 2 of The Socionomic Theory of Finance debunk 12 more myths that most investors fall for.

You can read the chapters for FREE now.

This article was syndicated by Elliott Wave International and was originally published under the headline The Idea that Peace and War Drive Stock Prices Is a Myth. EWI is the world's largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.

Silver’s Volatility Is Flashing a Familiar Signal

By Elliott Wave International

Silver is living up to its reputation for volatility as the new year begins.

Silver’s one-month implied volatility has surged, a development that has historically coincided with important highs and lows in the metal’s price. Since 2020, similar volatility spikes have tended to appear near key turning points rather than during quiet, trending phases.

At the same time, the silver/gold ratio has also jumped, showing that silver began outperforming gold late in last year’s rally. In past cycles, sharp advances in this ratio have often accompanied tops in silver prices.

What makes the current setup notable is the interaction between these two measures. Spikes in volatility have frequently aligned with turning points in the silver/gold ratio, while spikes in the ratio itself have tended to appear near major price peaks.

Will history repeat once again — or is this rally still unfolding? Elliott wave analysis helps place these extremes into a broader market context and assess what typically comes next when conditions look like this.

Elliott Wave International has identified 18 charts that are flashing “warning” signals – check out their free report to prepare for what’s next..