S&P Not Yet Ready For Fall Toward 1666

S&P (SPX) according to our Elliott wave analysis has completed wave A down and is now in the process of making wave B up towards 1710-15. The fact that we label this move that started at 1730 as a correction is only because the chances are slightly in favor of this bullish scenario. Although this is our first choice we do not believe that it is worth entering long at this price levels. The bearish scenario and all my personal trades are presented to our subscribers only. Moving on now to our wave count, as we mentioned in a previous post, the entire upward move from 1627 to 1730 is confirmed over and complete. The first leg down for our bullish scenario is just wave A. This is depicted in the chart below.

Our target for S&P as mentioned in our last post is 1666 (61,8% Fibonacci retracement). Our first target of 1688-90 has been achieved and we now believe it is time for a small bounce towards 1710. This bounce should take two days to develop and then we should see from next Tuesday or Wednesday a new downward move as wave C towards 1678 or 1666.

The weekly view in S&P is for the time being saved from signalling a sell. The EMA has not been crossed and therefore we should wait for the confirmation as support at 1690-95 is held and it seems a bounce is more probable now than a break of support. As per our wave analysis, we expect prices to make a moderate upward move and then re-test and break the 1690-95 support level.

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