SPX for week of 9/5/17: Butterfly and Bat meet Elliott Wave

Interesting setup heading into 9/5/17 for SPX. The published mid-week (8/29) Elliott Wave is still in play as wave b extended beyond target of 2465 area to 2480.38. Still expecting wave c to start soon and looked to Gartley/Bat/Butterfly charts for validation.

Using all of Wave 5 from the mid-week update as "X - A" a Butterfly (Red) is traced to project possible wave c movement. Within the Butterfly the down leg (A - B) is used to start a separate Bearish Bat pattern (yellow) having a more rapid time frame.

Looking at eventual convergence of all three in 2410-2415 area in September.

Trade active:

Exercising caution in event wave b is actually a new impulse wave (5). Added "case for the bulls" chart to site. If new wave, then short position will be terminated early with expected support at 2456.

Trade active:

Closed short during 9/5/17 drop and switched long at 2451 target. However, this bat/butterfly remains the alternate if market moves down back below 2454/2446 area.

Comment:

Still Long, but this alternative is still in play. 9/6 close with support at 2467 could be b wave before further decline. However, looks like an impulse and up move with just a pause.

Trade closed: target reached:

Closed Long near 2464 since 2467 proved stubborn. This original alternative has merit and will be reviewed with interest in a revised Bat target.