Elliott Wave Analysis of the S&P-500 (SPX) by Sid from ElliottWavePredictions.com

Elliott Wave Analysis of the S&P-500 (SPX) by Sid from ElliottWavePredictions.com. Click on the charts twice to enlarge.

If the above wave count is correct, the orthodox end of wave B (burgundy) ended on October 18 with a bearish truncated pink wave 5, which achieved an exact 1.382 relationship with wave A (burgundy). Wave B’s of expanded flats most commonly seek out a target where they are 1.382 times the length wave A was. Also, the pink mid-channel line offered exact resistance on that date. The pink channel was derived by connecting the extremes of waves 2 and 4 pink, placing a parallel copy intersecting the extreme of pink 3, and inserting a mid-channel line.

A full explanation of this interpretation, as well as wave counts and targets for other major world stock markets, commodities, and currencies was presented during this morning’s “Counts” webinar. It is not too late to view the entire 2+ hour presentation before the markets open for the week. Here is how to do so . .

Also worth noting are the two MACD histogram divergences, and now the MACD-line divergence, all on the weekly chart. These are typically very powerful trend change signals.