Erlanger Charts Show the S&P Could Pull Back to 4,000

by Wall Street Rebel | James DiGeorgia | 04/21/2021 4:45 PM
Erlanger Charts Show the S&P Could Pull Back to 4,000

Tuesday was another nice up day for the Major U.S. Indexes, but the latest Erlanger S&P Chart shows the possibility of a retracement to 38.2% or to 4,000 could be ahead. If that level is broken, the downside could be to 61.8 becomes possible, and 3,900 could be retested.

 

The U.S. Stock Market is showing once again a Democrat President is better for investors than a Republican President even with take hike proposals. The U.S. stock indexes have been in rally mode since President Biden’s inauguration.  The U.S. equity markets are outperforming their growth during the first 100 days seen during the Trump Administration. Yet, our Erlanger Chart Room charts tell us a pullback, retracement may be lining up of 38.2% to 4000. A break of that level could lead to 61.8% retracement to 3,900.

 

Alt: (S&P Chart)

 

The Biden Job’s Bill (Infrastructure Plus) could be sharply pruned by the President’s attempt towards bipartisanship. Something Democrat Senators Joe Manchin of West Virginal and Kyrsten Sinema has asked the President to do. Should the Biden Job’s Bill be stalled and killed, a retracement in the major indexes wouldn’t surprise anyone on Wall Street.

In addition to Biden Job’s bill, investors must keep their eyes peeled on the 150 Russian Troops on the Ukrainian border and the escalating conflict between Taiwan and China that also involves the Philippines. Many national security analysts warn that a coordinated military conflict by China and Russia is approaching. A Russian invasion and military conflict between China, Taiwan and the Philippines would put the United States in the middle and could result in a dangerous non-nuclear World War III.

Putting those risks aside, the growing warnings about the danger of variants of COVID-19 being created around the globe could put the world in a much more dangerous situation in the months ahead. The U.S. equities market is rallying on the success of the vaccination program executed by the Biden Administration. Yet, this success could still be undermined by outbreaks taking place around the world.

 

                     Economy is in a 'wartime boom': Investment strategist

 

 

 

Steady, Reliable, Profitable Options Trade Recommendations [Click here to learn more]

 

 

 

 

Latest News

Stay Up to Date With The Latest
News & Updates

Join Our Newsletter



GET THE NEWSLETTER

Rebel Yell Morning Market Report
Market Alerts
Offers from us
Offers from our trusted partners

Follow Us

Connect with us on social media

Facebook Twitter