📊 S&P 500 – Is Wave IV Nearing Completion?
According to Elliott Wave Theory, the S&P 500 is currently in an impulsive structure, and it seems to be completing Wave (IV) in a larger degree. Typically, Wave IV retraces near the Wave IV of Wave III, which aligns with the corrective zone in this analysis.
🔹 Two Possible Scenarios:
1️⃣ Conservative Approach: If price remains within the 23.6%–50% Fibonacci retracement zone, we can expect Wave IV to complete soon, leading to the start of Wave V in the impulsive structure.
2️⃣ Aggressive Scenario: If the price breaks above 6147.43, this wave count might no longer be valid, and an alternative structure (such as an ending diagonal) could be forming instead.
📌 Key Level to Watch:
The invalidation level for this scenario is 5122.40. As long as price stays above this zone, there is a strong possibility of an extended Wave V, with Wave 1 already completed and Wave 2 correcting within the 50%–61.8% Fibonacci retracement range before a potential bullish continuation.
⚠️ Alternative Possibility – Complex Correction?
While this count follows Elliott Wave principles, we should also consider the possibility of a complex correction (WXY or a triangle formation) before confirming a bullish move.
📊 Final Thought:
With the equality of Waves I & III respected, the impulsive structure remains valid unless price enters Wave I territory. Otherwise, we might be looking at a different formation.
💡 What’s your view? Do you agree with this analysis, or do you see an alternative setup? Drop your thoughts below! 👇📈
According to Elliott Wave Theory, the S&P 500 is currently in an impulsive structure, and it seems to be completing Wave (IV) in a larger degree. Typically, Wave IV retraces near the Wave IV of Wave III, which aligns with the corrective zone in this analysis.
🔹 Two Possible Scenarios:
1️⃣ Conservative Approach: If price remains within the 23.6%–50% Fibonacci retracement zone, we can expect Wave IV to complete soon, leading to the start of Wave V in the impulsive structure.
2️⃣ Aggressive Scenario: If the price breaks above 6147.43, this wave count might no longer be valid, and an alternative structure (such as an ending diagonal) could be forming instead.
📌 Key Level to Watch:
The invalidation level for this scenario is 5122.40. As long as price stays above this zone, there is a strong possibility of an extended Wave V, with Wave 1 already completed and Wave 2 correcting within the 50%–61.8% Fibonacci retracement range before a potential bullish continuation.
⚠️ Alternative Possibility – Complex Correction?
While this count follows Elliott Wave principles, we should also consider the possibility of a complex correction (WXY or a triangle formation) before confirming a bullish move.
📊 Final Thought:
With the equality of Waves I & III respected, the impulsive structure remains valid unless price enters Wave I territory. Otherwise, we might be looking at a different formation.
💡 What’s your view? Do you agree with this analysis, or do you see an alternative setup? Drop your thoughts below! 👇📈
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.
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.