S&P/TSX 60 Index Elliott Wave technical analysis [Video]

S&P/TSX 60 Elliott Wave technical analysis

• Function: Bullish Trend.

• Mode: Impulsive.

• Structure: Navy Blue Wave 5.

• Position: Gray Wave 3.

• Direction (next lower degrees): Gray Wave 4.

• Invalidation level: 1341.

Technical overview

The daily Elliott Wave analysis of the S&P/TSX 60 index signals a strong bullish trend. The focus is currently on navy blue wave 5, which is part of the broader gray wave 3 structure. The previous navy blue wave 4 correction appears complete, and the market is now advancing in the terminal phase of navy blue wave 5.

This progression suggests the index is nearing the end of a substantial bullish sequence that began with gray wave 1. The critical invalidation level is set at 1341. A move below this point would invalidate the current bullish wave structure and necessitate a revised outlook.

Market context

The daily chart provides a detailed view of this final impulsive movement, highlighting the index's current position within the broader Elliott Wave framework. Once navy blue wave 5 concludes, a corrective gray wave 4 is expected to follow before the potential continuation in gray wave 5.

Navy blue wave 5 is seen as both a short-term trading opportunity and a structural component of the ongoing trend. Traders should monitor for typical fifth wave signals such as weakening momentum or divergence, which may indicate the beginning of a larger correction.

Strategic implications

The trend remains intact, and holding long positions aligns with the bullish outlook. However, as wave 5 matures, cautious trading and enhanced risk management are recommended.

This analysis provides actionable insights for investors aiming to benefit from the potential final stage of the current bullish run in the S&P/TSX 60 index.

S&P/TSX 60 Elliott Wave technical analysis

• Function: Bullish Trend.

• Mode: Impulsive.

• Structure: Navy Blue Wave 5.

• Position: Gray Wave 3.

• Direction (next lower degrees): Gray Wave 4.

• Invalidation level: 1341.

Technical overview

The weekly Elliott Wave analysis of the S&P/TSX 60 index presents a strong bullish outlook, signaling the final stages of a major upward trend. Navy blue wave 5 is currently in motion and forms a part of the broader gray wave 3 structure. With navy blue wave 4 now completed, the current movement marks a terminal impulsive phase.

This analysis suggests that the index is moving toward the end of a substantial bullish cycle that began with gray wave 1. The invalidation level is marked at 1341—any drop below this level would call the current bullish scenario into question.

Market context

From a weekly perspective, the index offers a clear picture of its position within the broader Elliott Wave count. Navy blue wave 5 is advancing within the context of gray wave 3. Upon completion, a corrective phase is expected as gray wave 4, which may precede a final upward move in gray wave 5.

This wave formation is critical for identifying potential turning points. Traders and investors should monitor for typical end-of-trend signals such as momentum divergence and declining volume, which often characterize the completion of fifth waves.

Strategic implications

Maintaining long positions is still in line with the ongoing trend. However, caution is advised as the current wave matures. Tighter risk management is recommended to prepare for any signs of trend exhaustion.

This weekly Elliott Wave analysis offers meaningful insights for position traders aiming to benefit from what could be the closing stages of a significant bullish movement in the S&P/TSX 60 index.

S&P/TSX 60 Index Elliott Wave technical analysis [Video]