Elliott Wave View: S&P 500 Pullback Should Be Supported

Technical analysis of Forex market

S&P 500 (SPX) Elliott Wave View suggests the rally from October 31 low is unfolding as a 5 waves impulse Elliott Wave structure. Up from October 31 low, wave (1) ended at 3646 and pullback in wave (2) ended at 3511.9. Wave (3) is currently in progress and the internal subdivision is unfolding as another 5 waves impulse in lesser degree. Up from wave (2) low at 3512.4, wave ((i)) ended at 3628.5 and wave ((ii)) dips ended at 3543.8.

Index then resumed higher and wave ((iii)) is expected to end soon. Expect Index to then pullback in wave ((iv)) before turning higher in wave ((v)). The 5 waves move higher from wave (2) low on November 10 should complete wave 1 of (3). Afterwards, expect a bigger pullback in wave 2 of (3) to correct cycle from November 10 low before the rally resumes. As far as November 10 pivot low at 3512.4 remains intact, expect dips to find support in 3, 7, or 11 swing for more upside. Potential target higher is minimum 100% – 123.6% from October 31 low which comes at 3920 – 4016.

S&P 500 (SPX) 45 Minutes Elliott Wave Chart