SP500: Weekly Reversal Candle Is Pointing For A Deeper Retracement

By: Gregor Horvat | Mon, Mar 17, 2014
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The markets were in risk-off mode during the Asian trading hours as respond to Crimea's votes results. If situation would get worse then be aware of even lower levels on S&P while Crude oil and Natural gas could find a support.

On the Weekly chart of the S&P500 we have seen a bearish close at the end of the last week that erased all of the gains from a week earlier. This can also be an important evidence for a bearish case in the following days.

S&P500 Weekly - Candlesticks

S&P500 Weekly Candlesticks Chart


S&P500 Daily

S&P500 has been in bullish mode since February but it looks like that the direction of a trend could be changing now after a rally up to 1880/1920 Fibonacci and channel resistance area, where we see zone for a completed fifth wave in wave 5) of (3). So far, market is reversing nicely down with a weekly close price at 1839 so we suspect that market has turned bearish now for a three wave pullback down in blue wave (4).

S&P500 Daily Elliott Wave Analysis

S&P500 Daily Elliott Wave Analysis Chart


S&P500 4h

On the 4h chart of the S&P500 Futures contract we are looking at the Elliott Wave count where structure might have finally formed a top after very strong sell-off in the last couple of days from 1886. A decline however is still not a clear impulse, but another intraday leg down to 1800/1810 will suggest that trend has turned bearish or at least sideways. In that case traders could be interested in shorts opportunities.

S&P Futures (Mar 2014) 4h- Elliott Wave Analysis

S&P Futures (Mar 2014) 4-Hour Elliott Wave Analysis Chart

 


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Gregor Horvat

Author: Gregor Horvat

Gregor Horvat
www.ew-forecast.com

Gregor Horvat

Grega is based in Slovenia and has been involved in markets since 2003. He is the owner of www.ew-forecast.com, but before that he was working for Capital Forex Group and TheLFB.com. His feature articles have been published on: SafeHaven.com, FXstreet.com, Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu, Insidefutures.com, etc. He recently won the award on FXStreet.com for Best Forex Analysis in 2016. At www.ew-forecast.com he helps clients and educate them about the Elliott wave prinicple and how to label and track unfolding patterns in real time.  His approach to the markets is mainly technical. He uses a lot of different methods when analyzing the markets such as candlestick patterns, MA, technical indicators etc. His specialty however is Elliott Wave Theory which could be very helpful especially if you know how to use it in combination with other tools/indicators.

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