The diamond pattern was broken but the possible upwards breakout was quickly reversed. The second hourly Elliott wave count expected this but price fell 6.13 points short of the target.
Upwards movement continues with a new all time high. Downwards movement at the end of this session remains above stops on long positions.
A brief shallow pullback was expected for Friday. Price moved overall sideways meeting the expectation.
On Friday another downwards day unfolded exactly as expected for the S&P500.
Price has moved sideways in a small range for Monday’s session. This fits the hourly Elliott wave count and the alternate daily Elliott wave count best.
A downwards day was not expected for Friday. The slight new lower high and lower low essentially moved price sideways for the session.
Upwards movement for the start of the week breaks above a prior small consolidation with a breakaway gap. Gaps can be useful for trading.
The target given by the Elliott wave count can now be calculated at two degrees, so it widens to a small zone.
Downwards movement was expected from the Elliott wave count and classic technical analysis for Tuesday’s session. This is what has happened.
Friday was expected to begin with some upwards movement, which is how the session began, but price did not move as high as was expected.
Overall, sideways movement was expected for a consolidation, which is what is happening.
Upwards movement was expected for Tuesday’s session.