SP500: Price Could Turn Down Next Week

By: Gregor Horvat | Fri, Oct 16, 2015
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We see nice bounce from recent 1830 level but move to the upside can be temporary as we see corrective personality on lower time frames. Ideally market is making a corrective wave B that could be looking for a top at 2020-2040 in the next few days from where prices can fall back to the lows, deeper within ongoing corrective red wave IV).

S&P500, Daily

S&P500 Daily Elliott Wave Chart

On the 4h chart, S&P500 is back at the highs, so seems like that wave C) of a flat in wave (B) is still in play towards 100% projection level of wave C)=A) which comes in around 2050. In that zone we also see that black subwave 5 will be equal to wave 1 so it's seems like an ideal area for a reversal down next week.

S&P500, 4h

S&P500 4-Hour Elliott Wave Chart

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.

Basic Flat Pattern:

Elliott Wave Idealized Basic Flat 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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