SP Futures Could Turn Bullish Above 1685 - Elliott Wave

By: Gregor Horvat | Wed, Oct 9, 2013
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S&P Futures extended its weakness to 1663 last week, but decline from the high can still be counted as a three wave move, so trend could turn bullish. We however need more evidences before we may look back higher again, back towards 1726. In other words, we need impulsive recovery in clear five waves through the upper channel line and also through 1685 to confirm a reversal.

S&P500 Futures 4-Hour Chart


Alternate Elliott Wave Scenario

Further weakness in the next two days towards 1625 will suggest that prices are falling impulsively. In such case we would focus on flat correction on a daily chart.

S&P500 Futures Daily Chart


Elliott Wave Flat Pattern

A Flat is a three-wave pattern labeled A-B-C that generally moves sideways. It is corrective, counter-trend and is a very common Elliott pattern.

Expanded Flat

• Elliott Wave Expanded Flat has 3-3-5 sub wave structure
• Wave B moves beyond the start of wave A
• Wave C ends more substantially beyond the ending level of wave A
• Expanded Flat appears in wave two or four in an impulse, wave B in an A-B-C, wave X in a double or triple zig-zag, or wave Y in a triple threes

Idealized Elliott Wave Pattern

 


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Gregor Horvat

Author: Gregor Horvat

Gregor Horvat
www.ew-forecast.com

Gregor Horvat

Gregor Horvat, based in Slovenia, has been in the forex markets since 2003. He is a technical analyst and individual trader who has worked for Capital Forex Group and TheLFB.com. He also is founder of forex services on www.ew-forecast.com. EW-Forecast.com provides technical analysis of the financial markets, highlighting behavioral patterns based on the Elliott Wave Principle (EWP). Website: http://www.ew-forecast.com/

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