S&P Futures extended its weakness to 1663 last week, but decline from the high can still be counted as a three wave move, so trend could turn bullish. We however need more evidences before we may look back higher again, back towards 1726. In other words, we need impulsive recovery in clear five waves through the upper channel line and also through 1685 to confirm a reversal.
Alternate Elliott Wave Scenario
Further weakness in the next two days towards 1625 will suggest that prices are falling impulsively. In such case we would focus on flat correction on a daily chart.
Elliott Wave Flat Pattern
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.
• Elliott Wave Expanded Flat has 3-3-5 sub wave structure
• Wave B moves beyond the start of wave A
• Wave C ends more substantially beyond the ending level of wave A
• Expanded Flat appears in wave two or four in an impulse, wave B in an A-B-C, wave X in a double or triple zig-zag, or wave Y in a triple threes