• 806 days Will The ECB Continue To Hike Rates?
  • 807 days Forbes: Aramco Remains Largest Company In The Middle East
  • 808 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,208 days Could Crypto Overtake Traditional Investment?
  • 1,213 days Americans Still Quitting Jobs At Record Pace
  • 1,215 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,218 days Is The Dollar Too Strong?
  • 1,218 days Big Tech Disappoints Investors on Earnings Calls
  • 1,219 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,221 days China Is Quietly Trying To Distance Itself From Russia
  • 1,221 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,225 days Crypto Investors Won Big In 2021
  • 1,225 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,226 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,228 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,229 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,232 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,233 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,233 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,235 days Are NFTs About To Take Over Gaming?
Is The Bull Market On Its Last Legs?

Is The Bull Market On Its Last Legs?

This aging bull market may…

How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

  1. Home
  2. Markets
  3. Other

SPX: Follow Up of The Ending Diagonal Pattern

I maintain as a probable scenario that price from the October 2013 low is forming an Ending Diagonal, in which case SPX is now involved in unfolding the last wave (V).

If the Ending Diagonal pans out (Terminal Elliott Wave pattern) SPX should conclude a Double Zig Zag from the March 2009 lows opening the door to a major reversal.

SPX Daily Ending Diagonal Chart
Larger Image

The assumed wave (V) of the Ending Diagonal idea has to unfold a corrective pattern, usually either a Zig Zag or a Double Zig Zag.

If the overlapping up leg from the April 28 low can be considered an Expanded Ending Diagonal/Leading Diagonal then we would have two options:

  1. If it were an Expanded Ending Diagonal, at last Friday's hod price should have completed with a Double Zig Zag the wave (A) of a larger Zig Zag, in which case the wave (B) pullback should bottom in the range 1862-1844 (Blue labelling). Once the wave (B) is in place it will be followed by the last wave (C) up that will complete the Ending Diagonal.
  2. If it were a Leading Diagonal then last Friday's hod would be the wave (I) of a pending impulsive sequence that will complete a Double Zig Zag from the April 11 low establishing the wave (V) of the Ending Diagonal (Red labelling). If this is the correct pattern a wave (2) pullback should bottom in the range 1872 - 1866

SPX 60-Minute Chart
Larger Image

In addition to the two options discussed above we cannot rule out that Friday's hod is the wave (b) of a Triangle, which would establish the wave (B) of a Double Zig Zag. if this is the correct pattern the following thrust wave (Y) will complete the Ending Diagonal.

SPX Double Zig Zag 60-Minute Chart
Larger Image

 

Back to homepage

Leave a comment

Leave a comment