Elliott Wave chart analysis for the S&P 500 for 19th May, 2011. Please click on the charts below to enlarge.

I have a few members who are colour blind and in response to their requests to make the labels on the charts more readable I have altered the labels’ font size and made each degree of labeling alternate from oblique to regular font styles. To view the new wave notation table (version 2) go here. Please let me know if the new wave notation makes it easier for you to read the labels on the charts, whether you’re colour blind or not.

S&P 500 daily 2011

As expected the S&P 500 moved higher during Thursday’s session.

Because the last downwards wave moved into wave 1 pink price territory this may not be wave 4 pink. Wave 3 pink must be developing as an extended wave. We may expect momentum to increase as we move towards the middle of this third wave.

Corrections within this upwards wave may find strong support at the lower end of this trend channel on the daily chart.

It is possible that this third wave may break through the mid line and move into the upper half of the channel.

Targets remain the same. At 1,553.42 wave 5 blue will reach equality with wave 3 blue. At 1,564.02 wave C black will reach equality with wave A black. This is our long held target zone for upwards movement to end.

S&P 500 hourly 2011

Upwards movement is finding some resistance close to the upper edge of the trend channel here on the hourly chart.

We have the first completed five wave structure upwards now on the hourly chart with a very brief and shallow second wave correction to follow it.

Ratios within wave 1 purple are: wave 3 aqua is 1.39 points short of 1.618 the length of wave 1 aqua and wave 5 aqua is just 0.52 short of wave 1 aqua.

The following upward movement labeled 1 aqua is an impulse on the 15 minute chart and so this may be wave 1 aqua of wave 3 purple. It cannot be a B wave of a flat correction.

Any further downwards movement of wave 2 aqua may not move beyond the start of wave 1 aqua. This wave count is invalidated with movement below 1,336.36.

The short to mid term target for wave 3 green remains the same. At 1,392.77 it will reach 1.618 the length of wave 1 green.