Elliott Wave Analysis: SP500; and Crude OIL
E-mini S&P500 is moving sideways with a contracting range which is tighter and tighter so breakout is going to occur soon. Technically we expect a push to a new high since we know that triangles are continuation patterns. That said, watch out for 2273 bullish level which can be an important breakout point this week for bulls. On the downside we see 2248 as very important.
Decline on crude oil below 52.66 suggests that rally from Jan 18 low was only a temporary three wave bounce, now labeled as wave E of a bearish triangle. The reason why we changed the view to a temporary bearish mode is also a five wave reversal from 53.67 which means that bears can be in control for a few days. Rise back above 53.67 would be a new bullish evidence for this energy.
Crude OIL, 30Min