This is a short update on my previous Elliot waves trading idea about SP500 and the Dow Jones
Let’s begin first with the SP500. I will start directly from a daily chart. ( for the big picture on a monthly basis, please see my previous analysis. Elliott waves signals for S&P500 )
Here the structure suggests that we are in a correction for wave 4. I think that this wave 4 is still developing and currently I see two possible variation types. First, one – the correction is Zig-Zag, in this case in the coming weeks there will be more down moves. The potential target for the end of correction is the area around 4070-4150 for SP500 and 32700-33000 for Dow.
The second one is an asymmetric triangle. In this case, there will be more sideways moves without new lows and new highs. Currently, we are in a wave (c) with a possible target of the zone of about 4350 for SP500 and about 34100 for the DOW.
With or without Ukraine, after the correction for wave 4 is completed, there will be another final upward cycle for wave 5. So here maybe the case will be selling the rumor buy the news.
All information has been prepared by TraderFactor or partners. The information does not contain a record of TraderFactor or partners prices or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may read it. Past performance is not a reliable indicator of future performance.