Prior to the open of the US session tomorrow, the US non-farm payrolls report is released. How will these numbers fair with a new chief labor statistician in place? We'll find out tomorrow.
Meanwhile, SPX appears to be carving a wedge. In Elliott wave terms, it would be an ending diagonal pattern.
The rally this week appears to be wave 5 of the five-wave pattern. RSI is diverging which is common on the final highs of this pattern. This implies an ending wave may be underway.
One of the rules of Elliott wave is that wave 3 cannot be the shortest between waves 1, 3, and 5. Therefore, since wave 3 is shorter than wave 1...this implies wave 5 must be shorter than 3.
Plopping that onto the chart, the current wave labeling shows a max price of 6,525. Now, of course price can go higher than 6,525, which would then require us to adopt an alternate wave count. If 6,525 is broken, then I would label the rally from Aug 19 thru today as wave 3. Still more upside, but similar outcome when the pattern does complete.
After the ending diagonal is finished, a swift retracement typically is experienced back to 6,212.
Meanwhile, SPX appears to be carving a wedge. In Elliott wave terms, it would be an ending diagonal pattern.
The rally this week appears to be wave 5 of the five-wave pattern. RSI is diverging which is common on the final highs of this pattern. This implies an ending wave may be underway.
One of the rules of Elliott wave is that wave 3 cannot be the shortest between waves 1, 3, and 5. Therefore, since wave 3 is shorter than wave 1...this implies wave 5 must be shorter than 3.
Plopping that onto the chart, the current wave labeling shows a max price of 6,525. Now, of course price can go higher than 6,525, which would then require us to adopt an alternate wave count. If 6,525 is broken, then I would label the rally from Aug 19 thru today as wave 3. Still more upside, but similar outcome when the pattern does complete.
After the ending diagonal is finished, a swift retracement typically is experienced back to 6,212.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.