Heading for a 5th wave on S&P 500
If we count waves according to Elliott Wave theory, we might see a final 5th impulsive wave going up to the 3000s.
Since we had a 3rd wave extension, the amplitude of the 5th wave should be around 100% of the first wave. This coincides with the double top that formed at $3123 beginning of March.
On the other hand, there is the $3000 level that got many price action since July 2019 that might stop the progression of the fifth wave.
My guess is that the fifth wave will come in the $3000-3123 range and then reverse to the $2930 pivot level.
If we break through that pivot, we might see a corrective swing down to the 2009 support. If this level of $2930 holds, we might consolidate and see higher highs.
Since we had a 3rd wave extension, the amplitude of the 5th wave should be around 100% of the first wave. This coincides with the double top that formed at $3123 beginning of March.
On the other hand, there is the $3000 level that got many price action since July 2019 that might stop the progression of the fifth wave.
My guess is that the fifth wave will come in the $3000-3123 range and then reverse to the $2930 pivot level.
If we break through that pivot, we might see a corrective swing down to the 2009 support. If this level of $2930 holds, we might consolidate and see higher highs.
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