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Elliott Wave chart analysis for the SPX500 for 4th November, 2010. Please click on the charts below to enlarge.

Upwards movement has invalidated the wave count at primary degree. I have updated the historical wave count today.

SPX500 daily 2010

The S&P is still in the middle of primary wave 2 of cycle wave C.

We no longer have divergence between price and MACD. With today’s strong upwards movement the S&P looks like it is in the middle of a third wave.

Long term targets for the end to wave C black are initially at 1,349.9 where wave C black will reach 0.618 the length of wave A black. Thereafter, if the structure requires further upwards movement to complete it, the next target is at 1,561.2 where wave C black will reach equality with wave A black. This higher target may be more probable as this is the most common relationship between waves A and C of a zigzag.

When wave 3 blue (minor) is over we should see a downwards wave of equal size in duration to blue wave 1 here.

Ratios within wave 3 green are a perfect impulse: wave 1 and 5 are just 4.7 points off equality and wave 3 is just 0.3 points longer than 1.618 the length of wave 1 orange. This is a textbook perfect impulse, giving confidence that this portion of the labeling is correct.

This wave count is now only invalidated by movement above 1,576.09 as wave 2 at primary degree may not move beyond the start of wave 1.

SPX500 hourly 2010

Within minor wave C we are towards the end of the third wave.

Wave 1 orange is a leading expanding diagonal which meets all rules and guidelines.

Wave 3 pink will reach 2.618 the length of wave 1 pink at 1,268.3.