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SP500

Elliott waves signals for SP500 and Dow Jones

Grand supercycle waves

Our main chart is right after the start of the free market. Before 1789y. (LSE) For those, who use Elliott waves we are at the end of the third wave from the grand supercycle. Our expectation is that this cycle’s gone end during 2022 y or in the first half of 2023 y. After that, we are going in the deeper and prolonged correction.

Supercycle waves
Cycle wave from 1974

On the weekly chart, we are at the end of the business cycle( in wave 5 from wave (5) from wave (V) ). This means that the upside potential is very limited. For those who invest in the long term is very important to know, that after one more bullish wave, the market will go in a very different business cycle and the upcoming correction will be unknown for them. Be prepared for that.

Wave analysis

After the bottom of 2020y. the impulse motion is developing and we are currently developing wave 4.

I expect wave 4 to end in the next few weeks in the area around 4150 points for SP500 and 32850-32740 for the DOW. The sentiment is no longer bullish, which is in line with the development of a correction of a similar order.  After the correction is over one more bullish wave will be in place. The ideal target will be about  5040-5220 points for SP500 and 38270 for the DOW.

Wave chart

On the 4hours charts, my expectations are for developing a corrective wave (iv) or (x). This means sideways consolidation, which can reach 4480p. for SP500 and 35100 for the DOW. After that one more down move. The ideal target for the end will be 4150p for SP500 and 32850-32740 for the DOW. After this down move happens the structure will be complete and most likely this will be the whole wave correction 4.

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