S&P 500 decline in a five-wave contracting pattern knows as leading diagonal from its all-time high. It's labelled i-ii-iii-iv-v in wave (a).
According to Elliot Wave theory, a three-wave correction follows every impulse move, that's the subsequent a-b-c zigzag move in SPX. The correction retraced more than 80% of the impulse, retested the upper boundary of the channel + daily demand zone.
Price is expected to resumed in the direction of the major impulse after a correction. The decline in wave (c) has the potential to take wave (a) low and beyond.
I will look for the break out of the parallel channel and green line for a conservative short entry while the red line is my short-term invalidation zone.
What's your view on S&P 500? Let me know in the comment.
Thanks,
Veejahbee.
According to Elliot Wave theory, a three-wave correction follows every impulse move, that's the subsequent a-b-c zigzag move in SPX. The correction retraced more than 80% of the impulse, retested the upper boundary of the channel + daily demand zone.
Price is expected to resumed in the direction of the major impulse after a correction. The decline in wave (c) has the potential to take wave (a) low and beyond.
I will look for the break out of the parallel channel and green line for a conservative short entry while the red line is my short-term invalidation zone.
What's your view on S&P 500? Let me know in the comment.
Thanks,
Veejahbee.
