SPY to continue the Elliot Wave Pattern?
Updated
Steve666 As promised, this is the current outlook I have of SPY.
On the far left, I have the first 5 wave motive count as a downtrend. The wave begins at the start of 2022 and makes 5 waves down. It is then followed by a corrective wave (double bottom). The high of this corrective wave was a little higher than I anticipated and slightly broke the trend but theory isn't perfect, just a guide. It eventually continued lower with another 5 wave count. I projected the bottom would be found in the zone outlined in this idea.
Elliot wave theory suggests that the trend is moving in a 5,3,5,3,5 pattern. If this holds true, we should be in a corrective wave. Since wave A has not confirmed yet, I projected some targets. I projected wave A to close the gap and reach former resistance at about 410ish. Wave B is at least a 50% retracement from the wave A high. The retracement will be somewhere within the bottom pink zone. Wave C is projected to be the same length as wave A (+/- a Fibonacci level). This means wave C tops out at the major resistance of about 430 which happens to be where wave 4 topped out. From there, we should see one more downtrending 5 wave count.
Eager to hear your thoughts...
On the far left, I have the first 5 wave motive count as a downtrend. The wave begins at the start of 2022 and makes 5 waves down. It is then followed by a corrective wave (double bottom). The high of this corrective wave was a little higher than I anticipated and slightly broke the trend but theory isn't perfect, just a guide. It eventually continued lower with another 5 wave count. I projected the bottom would be found in the zone outlined in this idea.
Elliot wave theory suggests that the trend is moving in a 5,3,5,3,5 pattern. If this holds true, we should be in a corrective wave. Since wave A has not confirmed yet, I projected some targets. I projected wave A to close the gap and reach former resistance at about 410ish. Wave B is at least a 50% retracement from the wave A high. The retracement will be somewhere within the bottom pink zone. Wave C is projected to be the same length as wave A (+/- a Fibonacci level). This means wave C tops out at the major resistance of about 430 which happens to be where wave 4 topped out. From there, we should see one more downtrending 5 wave count.
Eager to hear your thoughts...
Note
Looks like my A wave was pretty close, but my B wave pulled back waaaay too far. I will still maintain the same target for now and look more into corrective wave patterns. Also considering that my wave 5 is wrong and we are just entering corrective wave A. Watching closely.
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