A sharp fall down to 1783 on Friday suggests that the S&P is heading lower now in wave 4. Wave 4 is a corrective leg so this can be only a temporary weakness but we still need three legs down, (a)-(b)-(c), before we may turn bullish again. Ideally a three wave pattern will find a support around 1740/55 area.

S&P500 Daily Elliott Wave Analysis

S&P500 fell sharply to the downside in the last three trading days, which appears to be an impulse in progress, based on the personality of the move. As such, we now labeled end of a wave (v) of 3 at 1846 with truncated subwave v) from where we are now tracking a five wave move down in wave (a), first leg of a larger contra-trend three wave move. At the moment we see prices in minor pullback, labeled as wave iv, so be aware of more weakness early this week.

S&P500 4h Elliott Wave Analysis

On the intraday chart of the S&P Futures we see impulsive decline in action, because of strong and big move on Friday which is characteristics of an impulse. As such, current bounce from the lows is most likely only wave iv that may stop around 1790/95. Any intraday shorts from that region should have stops at 1813 invalidation level.

S&P500 1h Elliott Wave Analysis

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Ew-forecast.com is providing advanced technical analysis for the financial markets (Forex, Gold, Oil & S&P) with method called Elliott Wave Principle. We help traders who are interested in Elliott Wave theory to understand it correctly. We are doing our best to explain our view and bias as simple as possible with educational goal, because knowledge itself is power.

Gregor is based in Slovenia and has been in Forex market since 2003. His approach to the markets is mainly technical. He uses a lot of different methods when analyzing the markets; from candlestick patterns, MA, technical indicators etc. His specialty however is Elliott Wave Theory which could be very helpful to traders.
He was working for Capital Forex Group and TheLFB.com. His featured articles have been published in: Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu. He mostly focuses on currencies, gold, oil, and some major US indices.

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Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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