Elliott Wave Analysis: SP500 and USD Index
On the hourly chart of S&P500, we can see a higher degree three wave correction unfolding with price currently trading in wave C). We believe some resistance may be in the cards for the S&P500 around the 50.0 or 61.8 Fibonacci ratio, where even previous mid swings of wave 2 and 4 can act as turning points lower.
A five wave drop from current levels would be a confirmation for a change in trend, from bullish to bearish.
On the 30min chart of SILVER, we are looking at a nice eight wave cycle unfolding, with price specifically trading in the second portion of this wave cycle, in corrective wave B. We know that after every five waves, a contra trend reaction follows, and in our case this reaction can find its base and a bullish turning point around the previous wave 2 swing at the 17.05 level. At the moment however price may still reach for higher levels within wave B, before making a drop into final wave C.