SP500: Price Could Turn Down Next Week

By: Gregor Horvat | Fri, Oct 16, 2015
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We see nice bounce from recent 1830 level but move to the upside can be temporary as we see corrective personality on lower time frames. Ideally market is making a corrective wave B that could be looking for a top at 2020-2040 in the next few days from where prices can fall back to the lows, deeper within ongoing corrective red wave IV).

S&P500, Daily

S&P500 Daily Elliott Wave Chart

On the 4h chart, S&P500 is back at the highs, so seems like that wave C) of a flat in wave (B) is still in play towards 100% projection level of wave C)=A) which comes in around 2050. In that zone we also see that black subwave 5 will be equal to wave 1 so it's seems like an ideal area for a reversal down next week.

S&P500, 4h

S&P500 4-Hour Elliott Wave Chart

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.

Basic Flat Pattern:

Elliott Wave Idealized Basic Flat Pattern

 


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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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