Elliott Wave Analysis: SP500 Could Be In For A Reversal Higher

By: Gregor Horvat | Thu, Nov 3, 2016
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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.

S&P500, 4H

S&P500 4-Hour Chart

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:

Idealized Basic Elliott Wave Triangle 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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