S&P500 has turned sharply to the downside last week, more important, price finished the week at the lows which means that a lot of bearish sentiment is now involved on this market. Therefore, we suspect that S&P finished leg from 1812 which was wave V within larger extended wave III. With that in mind, traders should be aware of a big three wave contra-trend move in red wave IV, possibly even back to 1812 at the start of 2015.
S&P500 Daily Elliott Wave Analysis
S&P500 finished the week at the lows so looks like bearish sentiment is in play for stocks, which means that traders should be prepared on more potential weakness. In the short-term we expect a drop towards 1960/1970, to complete wave (3) or wave (C). However, price could be in wave (3) if we consider much larger wave structure that calls for a big corrective decline.
On the other-side, we would turn back for 2100 high if 2056 would be taken out.
S&P500 4h Elliott Wave Analysis
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