SPY Elliott Wave View: Should Extend Into New Highs

Technical analysis of Forex market

Short-term Elliott Wave view in SPY suggests that the cycle from October 01, 2021 low is showing a higher high sequence favoring new highs to follow. The internals of that rally is unfolding as an Elliott Wave impulse sequence where wave 1 ended at $436.03 high & wave 2 ended at $426.36 low. Up from there, wave 3 unfolded with extension where lesser degree wave ((i)) ended at $441.68 high. Afterwards, wave ((ii)) ended at $431.54 low, wave ((iii)) ended at $458.49 high. Then wave ((iv)) ended at $453.83 low and wave ((v)) ended at $470.65 high.

Down from there, SPY made a pullback in wave 4 to correct the cycle from October 04, 2021 low. The internals of that pullback unfolded as a zigzag structure where wave ((a)) ended at $465.26 low. Then wave ((b)) ended at $467.38 high and wave ((c)) ended at $462.05 low. Up from there, wave 5 remains in progress where wave ((i)) ended at $470.49 high and wave ((ii)) ended at $466.34 low. Near-term, while dips remain above $466.34 low and more importantly above $462.05 low expect SPY to extend higher towards $474.82- $480.04 area higher in wave ((iii)) before a pullback in wave ((iv)) develops.

SPY 1 hour Elliott Wave chart