SPX Elliott Wave View

Global Markets Stocks and Indexes
21

SPX has broken below Oct 30 low (2603.54), i.e. Primary wave ((W)), opening further downside with incomplete bearish sequence from Sept 21 high (2940.91). Near term Elliott Wave view suggests the decline to 2603.54 on Oct 30 low ended Primary wave ((W)). Bounce to 2815.6 ended Primary wave ((X)) as a zigzag Elliott Wave structure. Up from 2603.54, Intermediate wave (A) ended at 2756.55, Intermediate wave (B) pullback ended at 2700.44, and Intermediate wave © of ((X)) ended at 2815.62.

SPX has since declined from there and broken below Primary wave ((W)) at 2603.54, confirming the next leg lower has started. Primary wave ((Y)) is unfolding as a zigzag Elliott Wave structure where Intermediate wave (A) ended at 2583.23. Internal of Intermediate wave (A) unfolded as a diagonal where Minor wave 1 ended at 2631.09 and Minor wave 2 ended at 2800.18. Minor wave 3 ended at 2621.53, Minor wave 4 ended at 2708.54, and Minor wave 5 of (A) ended at 2583.23. Intermediate wave (B) is currently in progress to correct cycle from Nov 8 high (2815.62) in 3, 7, or 11 swing before the decline resumes. We expect Index to find sellers once Intermediate wave (B) bounce is complete in 3, 7, or 11 swing as far as pivot at 2815.62 high stays intact.

SPX 1 Hour Elliott Wave Chart

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Short term Elliott Wave view in SPX suggests that the decline to 2346.58 ended wave (3). The Index is currently correcting in wave (4) as a double three Elliott Wave structure. Up from 2346.58, wave W ended at 2520.27, wave X ended at 2443.96, and wave Y remains in progress towards 2619.58 - 2727.95 area before Index resumes lower or pullback in 3 waves at least.

A double three Elliott Wave structure is a complex correction in which we have two Elliott Wave corrective structures together. In this case, wave W subdivides as a zigzag Elliott Wave structure where wave ((a)) ended at 2467.76, wave ((b)) ended at 2397.94, and wave (©) of W ended at 2520.27. Wave X subdivides as a double three of lesser degree where wave ((w)) ended at 2467.47, wave ((x)) ended at 2519.49, and wave ((y)) ended at 2443.96.

Wave Y is proposed to be unfolding as a zigzag where wave ((a)) ended at 2538.07, wave ((b)) ended at 2522.13, and wave (©) of Y is in progress towards 2619.58 - 2727.95 before ending the entire wave (4) correction. Expect sellers to appear once wave (4) correction is over at the blue box area for a 3 waves pullback at least.

SPX 1 Hour Asia Elliott Wave Chart