The SP500 is range-bound and must hold 6780 to still allow for an April peak.

💡 DMK Insight

Elliott Wave theory is more than just a trading tool; it’s a lens through which to view market psychology. Understanding these sentiment waves can help traders anticipate shifts in momentum, especially in volatile markets like crypto and forex. The three-step-forward, two-step-back pattern highlights that price movements aren’t linear; they reflect collective investor behavior. This means that traders should be on the lookout for key reversal points, particularly after strong trends. For instance, if a market has surged significantly, a pullback could be imminent, offering a potential buying opportunity at lower levels. Keep an eye on the daily and weekly charts for signs of these waves, as they can provide insight into when to enter or exit positions. If you’re trading in a choppy market, recognizing these patterns can help you avoid getting caught in false breakouts. Remember, the real story is in the psychology behind the price action, so stay alert to sentiment shifts that could signal a change in trend.