The SPX since the 8/15/16 top could be forming an Elliott wave Expanding Flat. In this corrective pattern the initial decline is in three waves followed by a three wave rally that exceeds the point of origin of the three wave decline.
In this case its the SPX top at 2193.80 made on 8/15/16.
In Expanding Flats the most likely Fibonacci relationship of the three wave rally to the preceding three wave decline is 1.236. This targets SPX 2219.70 as the likely target for what would be labeled as wave "B"
within the supposed wave "B" wave "a" x .618 = 60.90 + b = SPX 2212.10
2212 to 2219 is the resistance zone.
If the SPX makes a top in this zone, the subsequent move down would probably reach at a minimum just below SPX 2083.80. If there is a peak in the 2212-2219 zone I will have a follow up post about this wave count.
**** One final note in my recent posts on the DJIA I had been labeling the Horizontal Triangle as wave (4). I'm changing the label of the Horizontal Triangle to wave "b" because the DJIA appears to be taking the same Elliott wave pattern as the SPX.****
My next post will detail some very interesting developments on the SPX intraday wave count.
Mark
In this case its the SPX top at 2193.80 made on 8/15/16.
In Expanding Flats the most likely Fibonacci relationship of the three wave rally to the preceding three wave decline is 1.236. This targets SPX 2219.70 as the likely target for what would be labeled as wave "B"
within the supposed wave "B" wave "a" x .618 = 60.90 + b = SPX 2212.10
2212 to 2219 is the resistance zone.
If the SPX makes a top in this zone, the subsequent move down would probably reach at a minimum just below SPX 2083.80. If there is a peak in the 2212-2219 zone I will have a follow up post about this wave count.
**** One final note in my recent posts on the DJIA I had been labeling the Horizontal Triangle as wave (4). I'm changing the label of the Horizontal Triangle to wave "b" because the DJIA appears to be taking the same Elliott wave pattern as the SPX.****
My next post will detail some very interesting developments on the SPX intraday wave count.
Mark