SPX500 - We can break the top from here to complete the smaller wxyxz pattern or we will pull back right now to complete a standard 123 flat pattern before continuing upwards to make new highs.
We will need to re-evaluate the price action after we make new highs to see if any signs of continuation are showing but I think we will have a huge pull...
It is an important day in terms of news as the FOMC meeting minutes are released. This
will likely rock the stock markets and depending on the tone set out by the Fed the market
could remain range bounce of break out. If they start to talk down the dollar which could
be expected due to recession talks the market could react positively and a clear break higher
Looks like we're going to be bouncing in range for a little while as we form this right shoulder -- after the Fed cut, we should see some action that could take out the neckline of this H&S to god knows where. Safe trading everyone.
So far the expanded flat scenario has played out beautifully. From a larger TF perspective the risk/reward here definitely still favors the sell side. The current "rally" is running out of steam on momentum indicators and we are currently near the 21DEMA (which looks like it's about to death cross the 50DMA) where the 2nd leg of a typically correction begins. We...
Just as the title suggest this is part 1 of a 2-part chart analysis concerning the SP500. I will post the 2nd part shortly after so make sure you have a look at that as well.
The story behind the charts is:
I was testing out a risk management strategy and had gone back to the 16th of January when I noticed something. Originally I was looking at the 5m chart when...
SPX has reached the reversal zone of an expanded flat corrective wave pattern. The book says wave B of an expanded flat reverses at 1.236, but I would n't be surprised to see futures pump it to the 1.272 extension at 3020 which taps the trendline from the jan 18 and oct 18 tops on Monday. For a preview, take a look at AMZN's chart... it hit a wall at the 1.236 on...
The numbers have spoken.
As above, so below.
The bottom in 2009 at 666 have created one MINOR and one MAJOR fibonacci extention.
They both end at specific occult numbers (3033 or 3666). Please note that I did not make these numbers up - the market did.
Elliot wave analysis added 1-5, + ABC correction for predicting bottoms in next recession.