Elliott Wave Training

Are you looking to learn the Elliott Wave principle? Or maybe you already have some experience and want to find the ways to improve your skills better.

Click on this post for details:

http://wavepatterntraders.blogspot.com/2012/04/elliott-wave-training.html



Sunday, December 7, 2014

Elliott Wave Analysis of the SPX

I posted a short term count on StockTwits a few days back see here:

http://stocktwits.com/message/29926681

It never spiked higher as I thought it might, it appears that it could be morphing into a small wedge, we call that an ending diagonal, if that is the case, it can suggest a termination to the rally that start from the October 15th lows. Ideally if I had my way we would see a minor high, then a strong reversal, if a strong gap down under 2060SPX that would support the idea of a potential peak in place.


I am still working the idea that the move that started from the October 2011 lows is potentially coming to an end, that would suggest a significant decline is setting up. A decline that I think will surpass the move we saw in September - October 2014. Already I reading the same sort of comments that I was reading at the Sept highs, I was looking for a significant decline back then.

With the market struggling to break above the upper trend line, it think its a sign suggesting a decline is setting up. In a trending market, 4th waves tend to spike under the lower boundary of the trend channel only to see it move to the upside to finish a 5th and final wave.

So the September-October 2014 decline I think is a larger 4th wave and we are now likely in a 5th wave.

I am targeting the 1800 - 1750SPX area as the initial 1st target