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Again the upwards movement expected for the S&P 500 did not happen. Price has moved sideways remaining above the invalidation point.

The wave count is the same with just the one daily and one hourly chart.

Click on the charts below to enlarge.

S&P 500 daily 2013

The structure for primary wave B is a triple zigzag. Because three is the maximum number of structures within a multiple when this third zigzag is finally complete then the entire correction for primary wave B must be complete. There is no other Elliott wave structure which could allow for upwards movement within this wave count at cycle degree.

Wave (Z) black is incomplete as an exaggerated zigzag and wave C blue within it is incomplete.

Within wave iii pink of wave C blue there are some interesting Fibonacci time relationships: wave (i) green lasted 14 days (one more than a Fibonacci 13), wave (ii) green lasted a Fibonacci 8 days, and wave (iii) green lasted 20 days (one less than a Fibonacci 21). Wave (iv) green may have been over in 6 days (not close enough for a Fibonacci relationship). So far wave (v) green may have lasted 6 days and considering how this structure is unfolding it may take another 2 days to total a Fibonacci 8, or a further 5 days to total a Fibonacci 13.

At 1,548 wave C blue would reach equality with wave A blue. At that point primary wave B would be a 166% correction of primary wave A. This target may be too high. When waves iii and iv pink are complete I will recalculate the target based upon pink wave degree.

I have used Elliott’s channeling technique to draw a channel about wave (Z) black zigzag. Price may find resistance at the upper edge of the channel.

Within wave iii pink wave (iv) green may not move into wave (i) green price territory. This wave count is invalidated with movement below 1,448.

I have drawn a double wide channel about wave iii pink: draw the first trend line from the highs of waves (i) to (iii) green then place a parallel copy upon the low of wave (ii) green. Place a second parallel copy on the low of wave (iv) green. Price may remain within the upper half of the channel and may find resistance at the upper trend line.

S&P 500 hourly 2013

Price has managed to move sideways for the last two sessions when we expected upwards movement, and has remained above the invalidation points.

This does not look like a continuation of wave (iv) green because it is moving with the main trend, not against it as a correction would be expected to do.

It looks most like a series of overlapping first and second waves. This indicates an increase in upwards momentum when the middle of the third wave finally unfolds.

Price may be finding some support about the mid trend line drawn here on the low of wave (iv) green.

If this analysis of recent movement is correct then eventually wave (3) aqua of wave 3 purple of wave iii orange within wave (v) green must move price higher, above the end of wave (1) aqua at 1,524.24.

The short / mid term target remains the same. At 1,537 wave (v) green would reach 0.618 the length of wave (iii) green.

Within wave (3) aqua wave 2 red may not move beyond the start of wave 1 red. This wave count is invalidated in the short term with movement below 1,514.17.