S&P 500 IndexLong
Elliott Wave View: SPX Starts a New Impulsive Rally
Hello Traders,
Short term S&P 500 (SPX) Elliott wave view suggests that the selloff starting from Sept 21 high (2940.9) has ended at Oct 29 low (2603.54). We take the most aggressive view and call the low at 2603.54 as red wave IV. This suggests that SPX is ready to rally in a new bullish cycle towards a new all time high. However, for this view to gain validity, the Index must first break above the previous all-time high, labelled as red wave III at 2940.9. Without this confirmation, the Index technically can just correct the selloff from last month in 3 waves ABC zigzag, then continue the selloff again.
Looking at the internal subdivision, it appears the selloff from Sept 21 to Oct 29 low took the form of a double three Elliott Wave structure. Down from 2940.9 high, Black degree wave ((W)) ended at 2710.5, wave ((X)) ended at 2816.94, and wave ((Y)) ended at 2603.54. This move lower also ended a higher degree red wave IV. Since then, the Index has rallied strongly, further getting acceleration to the upside after U.S. midterm election.
Rally from red wave IV at 2603.54 is unfolding as a 5 waves impulsive structure where red wave 1 ended at 2756.55 and red wave 2 ended at 2700.25. Index has since extended higher again above red wave 1, suggesting that red wave 3 has started. Near term, while pullbacks stay above 2700.2, and more importantly above 2603.54, expect further upside in the Index. As an alternate, the rally from 2603.54 can take the form of a zigzag Elliott Wave structure, where the first leg higher to 2756.55 ended red wave A instead of red wave 1, and the pullback to 2700.25 ended red wave B instead of red wave 2. In this scenario, then SPX should finish red wave C as 5 waves then start to turn lower again.
Short term S&P 500 (SPX) Elliott wave view suggests that the selloff starting from Sept 21 high (2940.9) has ended at Oct 29 low (2603.54). We take the most aggressive view and call the low at 2603.54 as red wave IV. This suggests that SPX is ready to rally in a new bullish cycle towards a new all time high. However, for this view to gain validity, the Index must first break above the previous all-time high, labelled as red wave III at 2940.9. Without this confirmation, the Index technically can just correct the selloff from last month in 3 waves ABC zigzag, then continue the selloff again.
Looking at the internal subdivision, it appears the selloff from Sept 21 to Oct 29 low took the form of a double three Elliott Wave structure. Down from 2940.9 high, Black degree wave ((W)) ended at 2710.5, wave ((X)) ended at 2816.94, and wave ((Y)) ended at 2603.54. This move lower also ended a higher degree red wave IV. Since then, the Index has rallied strongly, further getting acceleration to the upside after U.S. midterm election.
Rally from red wave IV at 2603.54 is unfolding as a 5 waves impulsive structure where red wave 1 ended at 2756.55 and red wave 2 ended at 2700.25. Index has since extended higher again above red wave 1, suggesting that red wave 3 has started. Near term, while pullbacks stay above 2700.2, and more importantly above 2603.54, expect further upside in the Index. As an alternate, the rally from 2603.54 can take the form of a zigzag Elliott Wave structure, where the first leg higher to 2756.55 ended red wave A instead of red wave 1, and the pullback to 2700.25 ended red wave B instead of red wave 2. In this scenario, then SPX should finish red wave C as 5 waves then start to turn lower again.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
14 days trial --> elliottwave-forecast.com/amember/go.php?r=2670&i=l3 and get Accurate & timely Elliott Wave Forecasts of 78 instruments. Webinars, Chat Room, Stocks/Forex/Indices Signals & more.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.