iamthewolf

Elliott Wave: Week of 2/4/19 - Can market pass the test?

SP:SPX   S&P 500 Index
The tremendous rally of 2019 continues to pass through upside resistance. Impressive moves above the 50d sma and then Fibonacci level of 2698 are in the rear view after last week's march higher. What's next?

You likely guessed correctly that 200d sma at 2741 followed by another (higher degree) Fibonacci level near 2800. Always the case :)

A wider perspective view of the rally since 2009 illustrates two things:
1. Gains are mostly still in place and can be protected and cultivated,
2. A correction of that entire move is still likely.

Wave B (shown as a,b,c) of the larger degree correction is still unfolding where a near-term pullback is simply a downward lower degree wave b likely to be followed by further advance as wave c. Once that advance concludes the entire move since 2009 is at risk of final correction. Standard target is wave 4 of the entire move.

Timing is always the toughest part, so target dates are adjusted accordingly. Meanwhile, the corrective perspective remains as primary read for navigating the first part of 2019.

Price action in first week of Feb will guide direction IMO; got stiff resist Friday at 2716, could be topping here, see if it can push to the 200DMA. if not, B wave likely to emerge. Thanks for posting!
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iamthewolf DaddySawbucks
@DaddySawbucks, Will be interesting as usual. Thanks for visiting and commenting.
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