Elliott Wave Analysis: SP500 Could Be In For A Reversal Higher
E-mini S&P500 finally broke out of a range, out of an Elliott Wave triangle which was placed in wave B. But despite a nice break down we still think that whole decline from August highs is a temporary movement, and that leg down from 2135 is wave C, final wave of a contra-trend move. As such, traders should be careful here, and be aware of a bullish turn.
Ideally an impulsive reaction will occur from the 2080 region which will put trend back in bullish mode.
Triangles are overlapping five wave affairs that subdivide 3-3-3-3-3. They appear to reflect a balance of forces, causing a sideways movement that is usually associated with decreasing volume and volatility.
Basic Elliott Wave Triangle Pattern: