Elliott Wave Options: Elliott Wave Targets for S&P 500 Melt-Up!

Stocks haven’t just been trending higher in recent weeks. The S&P 500 had a hard time breaking through 5,500. Once that happened, however, the index managed to jump to over 5,600 in short order. That’s leading some to see signs of a market melt-up.

While fearful investors may worry about the eventual pullback, conditions right now are bullish for stocks to keep trending higher. And when the trend does change, it will start gradually. That’s why it’s important to know the key levels.

Markets have been trending higher even as inflation remains sticky. And as the latest labor data suggests that the labor market continues to slow.

It’s becoming clear that higher prices are getting harder to pass onto consumers. However, that may not fully materialize until the next quarterly earnings season.

It’s likely that markets will continue moving higher in anticipation of interest rate cuts. That will likely happen in September, giving investors a few more bullish weeks for markets.

With the markets trending higher, market leaders will likely continue to lead. That includes big tech names.

However, the market’s steep rally in recent months does warrant some caution. Now is not the time for aggressively bullish trading. Markets could consolidate in the past few weeks of July before trending higher again in August.

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