Analysis and Forecast of S&P 500 Using Elliott Wave Theory

Analysis and Forecast of S&P 500 Using Elliott Wave Theory

The current Elliott Wave cycle in the S&P 500 (SPX) suggests that there is an ongoing 5-wave impulse wave that started from the low on January 6, 2024. The wave structure indicates that the index has been moving higher in an impulsive manner, with corrections in between each wave.

Breaking down the wave count, the recent uptrend saw wave ((i)) ending at 4931.09, followed by a pullback in wave ((ii)) that ended at 4845.15. Subsequently, wave ((iii)) reached a high of 5187.78, with wave ((iv)) pulling back to 5095.88. The current wave ((v)) is underway, showing subdivision into smaller 5-wave structures.

Looking at the internal structure of the waves, wave (i) concluded at 5179.87, with wave (ii) finding support at 5105.28. This pattern continued with wave (iii) pushing towards 5261.1 and wave (iv) retracing to 5203.42. The corrective wave (iv) unfolded as a double three Elliott Wave structure, showcasing a complex correction.

As the index continues to progress, the near-term outlook suggests that as long as the support at 5105.28 remains intact, any dips should be limited in a 3, 7, 11 swing pattern before the index resumes its upward trajectory. This indicates that further upside is expected in the S&P 500, following the completion of the current corrective wave.

The Elliott Wave analysis of the S&P 500 provides valuable insights into the potential price movements of the index. By understanding the wave count, subdivision, and internal structure of the waves, traders and investors can make informed decisions regarding their positions in the market. The forecast for the near term suggests a bullish bias, with expected support levels and upside targets to watch for in the coming days.

Forex News

Articles You May Like

The Impact of Economic Data on Precious Metals and Cryptocurrencies
The Impact of Shanghai’s Property Sector Measures on the Australian Dollar
Exploring Financial Strategies at the G7 Meeting in Stresa
The Unseen Impact of Auto-Escalation in 401(k) Plans

Leave a Reply

Your email address will not be published. Required fields are marked *