Elliott Wave chart analysis for the SPX500 for 6th October, 2010. Please click on the charts below to enlarge.
At this stage, the S&P is held down by strong resistance from the upper trend line. It is extremely common for C waves to overshoot the upper trend line at their end. We may see this occur in the next day or so.
The maximum upwards point for wave 5 green where it will reach equality with wave 3 green is at 1,183.4.
This wave count is invalidated at the daily level only with movement above 1,220
We most likely have an end today to wave 3 orange within this terminal wave 5 green.
If wave 4 orange ended (and was remarkably brief) at 1,154.4 then the initial target for wave 5 orange to end wave 5 green is at 0.382 the length of wave 3 orange, at 1,167.2. Thereafter, the next target is 0.618 the length of wave 3 orange at 1,174.8.
If wave 4 orange extends further sideways price must remain above 1,154.4 as wave 4 orange cannot move into wave 1 orange price territory.
Wave 3 orange is almost perfectly equal with wave 1 orange; it is just 0.3 points shorter. Wave 5 is likely to have a fibonacci ratio to wave 3. All we need to see now for upwards movement to be complete is a satisfactory impulsive structure to the upside for this fifth wave.
If this wave count is correct then upwards movement may end sooner than the middle of next week. We are in a fifth wave at green degree of a terminal C wave at pink degree. We may see the beginning of wave 3 at minor degree in the next couple of days.