The S&P 500 Elliott wave structure is at an interesting junction. We have three possible scenarios on the top of our list. The main conclusion remains that all of them are likely to resolve to the upside.
Our preferred interpretation is depicted in black. It forms a 1-2-1-2 setup after a completed double-three correction into minor wave 4. That version looks best if it extends slightly further to the upside before correcting into subminuette wave (ii). The second possibility is depicted in red. It states that the double-three correction is not over yet. Instead, minute wave-y(circle) extends and takes the form of a triangle. Odds are just slightly favoring the red count as yesterday's drop counts better as an impulse.
The third scenario, which is possible but carries lower odds is not depicted in our charts. It is an upside surprise scenario that sees strong followthrough. Basically, the current wave carries on to the upside without noticeable retracements. Momentum needs to pick up and carry into overbought territory in order to shift odds towards this scenario.
All in all, the best strategy is to remain patient and keep a cool head. Another selloff is likely to result in a very nice BTD opportunity.
Our preferred interpretation is depicted in black. It forms a 1-2-1-2 setup after a completed double-three correction into minor wave 4. That version looks best if it extends slightly further to the upside before correcting into subminuette wave (ii). The second possibility is depicted in red. It states that the double-three correction is not over yet. Instead, minute wave-y(circle) extends and takes the form of a triangle. Odds are just slightly favoring the red count as yesterday's drop counts better as an impulse.
The third scenario, which is possible but carries lower odds is not depicted in our charts. It is an upside surprise scenario that sees strong followthrough. Basically, the current wave carries on to the upside without noticeable retracements. Momentum needs to pick up and carry into overbought territory in order to shift odds towards this scenario.
All in all, the best strategy is to remain patient and keep a cool head. Another selloff is likely to result in a very nice BTD opportunity.