SPX Elliott Wave Analysis: Calling Correction LowerHello Traders,
In this Elliott Wave analysis, we will have a look at the SPX Index.
SPX short-term suggests that the rally from 4/02/2018 low to $2792.25 ended the blue wave (1). Down from there, correction against that cycle remains in progress in 3, 7 or 11 swing structure. Also, it’s important to note here that the decline from $2792.25 peak shows an overlapping price action thus suggesting that the correction is taking place in a corrective manner i.e either Double three or Triple three structure.
Down from $2792.25, red wave W unfolded as a double three structure with a combination of 3,3,3 swings in each leg. The black wave ((w)) of red wave W ended at $2743.10, black wave ((x)) ended at $2774.86 and black wave ((y)) of W ended at $2698.67 low. Up from there, red wave X bounce remains in progress to correct cycle from 6/13 high ($2792.25) where black wave ((a)) ended at $2746.09 and black wave ((b)) completed at 2710.93 low.
Near-term focus remains towards $2745.34-$2756.41, which is the 50%-61.8% Fibonacci retracement area of the cycle coming from $2792.25 high to black wave ((c)) of red wave X.
Afterwards, the index is expected to continue lower in red wave Y to correct cycle from 4/02/2018 low. We don’t like selling the proposed pullback.
