Best of the Week
Most Popular
1. The Trump Stock Market Trap May Be Triggered - Barry_M_Ferguson
2.Why are Central Banks Buying Gold and Dumping Dollars? - Richard_Mills
3.US China War - Thucydides Trap and gold - Richard_Mills
4.Gold Price Trend Forcast to End September 2019 - Nadeem_Walayat
5.Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - Anika_Walayat
6.US Dollar Breakdown Begins, Gold Price to Bolt Higher - Jim_Willie_CB
7.INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - Nadeem_Walayat
8.Will Google AI Kill Us? Man vs Machine Intelligence - N_Walayat
9.US Prepares for Currency War with China - Richard_Mills
10.Gold Price Epochal Breakout Will Not Be Negated by a Correction - Clive Maund
Last 7 days
British Pound GBP vs Brexit Chaos Timeline - 14th Sep 19
Recession 2020 Forecast : The New Risks & New Profits Of A Grand Experiment - 14th Sep 19
War Gaming the US-China Trade War - 14th Sep 19
Buying a Budgie, Parakeet for the First Time from a Pet Shop - Jollyes UK - 14th Sep 19
Crude Oil Price Setting Up For A Downside Price Rotation - 13th Sep 19
A “Looming” Recession Is a Gold Golden Opportunity - 13th Sep 19
Is 2019 Similar to 2007? What Does It Mean For Gold? - 13th Sep 19
How Did the Philippines Establish Itself as a World Leader in Call Centre Outsourcing? - 13th Sep 19
UK General Election Forecast 2019 - Betting Market Odds - 13th Sep 19
Energy Sector Reaches Key Low Point – Start Looking For The Next Move - 13th Sep 19
Weakening Shale Productivity "VERY Bullish" For Oil Prices - 13th Sep 19
Stock Market Dow to 38,000 by 2022 - 13th Sep 19 - readtheticker
Gold under NIRP? | Negative Interest Rates vs Bullion - 12th Sep 19
Land Rover Discovery Sport Brake Pads and Discs's Replace, Dealer Check and Cost - 12th Sep 19
Stock Market Crash Black Swan Event Set Up Sept 12th? - 12th Sep 19
Increased Pension Liabilities During the Coming Stock Market Crash - 12th Sep 19
Gold at Support: the Upcoming Move - 12th Sep 19
Precious Metals, US Dollar, Stocks – How It All Relates – Part II - 12th Sep 19
Boris Johnson's "Do or Die, Dead in a Ditch" Brexit Strategy - 11th Sep 19
Precious Metals, US Dollar: How It All Relates – Part I - 11th Sep 19
Bank of England’s Carney Delivers Dollar Shocker at Jackson Hole meeting - 11th Sep 19
Gold and Silver Wounded Animals, Indeed - 11th Sep 19
Boris Johnson a Crippled Prime Minister - 11th Sep 19
Gold Significant Correction Has Started - 11th Sep 19
Reasons To Follow Experienced Traders In Automated Trading - 11th Sep 19
Silver's Sharp Reaction Back - 11th Sep 19
2020 Will Be the Most Volatile Market Year in History - 11th Sep 19
Westminister BrExit Extreme Chaos Puts Britain into a Pre-Civil War State - 10th Sep 19
Gold to Correct as Stocks Rally - 10th Sep 19
Market Decline Will Lead To Pension Collapse, USD Devaluation, And NWO - 10th Sep 19
Stock Market Sector Rotation Giving Mixed Signals About The Future - 10th Sep 19
The Online Gaming Industry is Going Up - 10th Sep 19
The Unknown Tech Stock Transforming The Internet - 10th Sep 19
More Wall Street Propaganda - 10th Sep 19
Stock Market Price Structure Still Suggests We Are Within Volatile Rotation - 9th Sep 19
Stock Market Still Treading Water - 9th Sep 19
Buying Pullbacks in Silver & Gold - 9th Sep 19
Government Spending - The High Price of a "Free Lunch" - 9th Sep 19
Don't Worry About a Recession - 9th Sep 19
Large Drop in Stocks, Big Rally in Gold and Silver - 9th Sep 19
US Stock Market Hasn’t Cleared The Storm Yet - 8th Sep 19
Precious Metals Were Ripe for a Pullback - 8th Sep 19
Market Chart Patterns to Spot High-Confidence Trading Opportunities in a "Pinch"! - 8th Sep 19
Five Feet High And Rising - Stock Market Bulls False Sense of Security - 8th Sep 19

Market Oracle FREE Newsletter

The No1 Tech Stock for 2019

Elliott Wave: SPX Decision Time Is Coming Soon

Stock-Markets / Stock Index Trading Dec 02, 2018 - 04:51 PM GMT

By: ElliottWaveForecast

Stock-Markets

The SPX Index is trading within a Blue Box in our system, these boxes are areas in which the Market needs to define whether it will become an Impulsive sequence which runs in 5-9-13 waves or corrective sequence in which runs in 3-7-11 waves. Many traders who follow The Elliott wave Theory understand the idea of 5 waves followed by 3 waves back as shown in the following chart.


An impulse is 3 advances of 5 waves and 2 pullbacks in 3 waves which make a total of 5 swings. On the other hand, an ABC structure only shows 2 advances of 5 waves and one pullback in 3 waves. It is shown in the following chart.

The difference between an Impulse and ABC is the extension within wave (III) which the SPX Index is not showing at this moment. We are an Elliott Wave Forecasting company but we have developed many other techniques that we use in our analysis and one of them is called the Blue Box system which is based on high-frequency trading. Market is not the same as it was back in 1930’s and hence Elliott Wave needs adjustment in current times. Consequently, we developed a system with rules which we added to the Elliott Wave’s basic rules which are available at our website. For us, it is really simple, as far as price is above the 100% extension of the first leg i.e. (a) / ( ( I ) related to ( b ) / (II ) but below the 1.618 extension of the same two points, the Market is within a twilight area. In this area, either side could end up being a winner. The following chart shows the Grand Supercycle of the S&P 500 Index which is showing a possible ABC structure and the Grand Supercycle Blue Box area.

SPX Quarterly Elliott Wave Analysis 11/27/18

We do understand that the market makers need to decide in which direction we are heading. Whether we are going to trade above the 3180 area or correct the Grand Super cycle which should be a similar correction to the one from 2000-2009. In that case, a huge peak has been reached. At this moment the Index is trading below the 1.618 Fibonacci extension which is at 3180 but still holding above the trend line from 2009 lows which means we can still be within the powerful wave (III) and finally break the Blue Box to the upside, as shown in the following chart and that is our current view as well.

As we always do, we do not forecast tops or bottom at Elliottwave-Forecast but we always understand the areas in which we are trading. We have been recommending trading the long side since 2010 and we still recommend the long. But with caution and always in the sequence of 3-7-11 swings which is the corrective sequence of the Market. All we got is an ABC from the all-time lows into the blue box within the Grand Supercycle and Bulls need to extend the Supercycle degree from 2009 to break the 3180. Then the Market will extend in a series of (IV) and (V). There is no question that we are in dangerous times but knowing the nature will help an investor to navigate in such choppy waters where either side can make the case for a victory. Let’s see who is stronger and will win. So far the bulls are still in control and nothing in price and distribution is calling that the Grand supercycle has ended. As far as it stays above the trendline, it is a 4-hour correction and should be bought in  7 or 11 swings. The Index already did 3 waves from the peak and could continue to new highs from here, if it does 7 swings lower, should be a gift to buy at the next Blue Box area.

By EWFEric

https://elliottwave-forecast.com

ElliottWave-Forecast has built its reputation on accurate technical analysis and a winning attitude. By successfully incorporating the Elliott Wave Theory with Market Correlation, Cycles, Proprietary Pivot System, we provide precise forecasts with up-to-date analysis for 52 instruments including Forex majors & crosses, Commodities and a number of Equity Indices from around the World. Our clients also have immediate access to our proprietary Actionable Trade Setups, Market Overview, 1 Hour, 4 Hour, Daily & Weekly Wave Counts. Weekend Webinar, Live Screen Sharing Sessions, Daily Technical Videos, Elliott Wave Setup .

Copyright © 2018 ElliottWave-Forecast - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules