S&P 500: The index may update the previous high of 4326.34
|We continue to analyze the situation on the SPX500 index from the point of view of Elliott theory. It is assumed that a large impulse trend is being formed, which is marked by five sub-waves of the cycle degree I-II-III-IV-V.
Perhaps the first three parts of the impulse pattern are fully completed, and there is a possibility that the cycle correction wave IV has also come to an end. It looks like a triple zigzag of the primary degree Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ.
Thus, in the near future, the price may start moving up above the maximum of 4326.34 in the final cycle wave V, which will take the form of a primary degree impulse, as shown on the chart.
An alternative scenario shows that the actionary wave Ⓩ will strive for equality with the wave Ⓨ.
Market participants may expect a drop in SPX500 to 3339.24. At that level, sub-waves Ⓩ and Ⓨ will be equal. Only after reaching the specified level, the price may turn around and start an upward movement. A bearish impulse wave (C) of the intermediate degree is required to complete the wave Ⓩ.
An approximate scheme of possible future movement is shown by trend lines on the chart.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.